Ethereum Validator Backlog: Over $1.09 Billion Worth of ETH Set to Be Unstaked
The Ethereum blockchain is currently experiencing a significant event in its history, with a mass exit event occurring in the validator queue. According to on-chain data, there is currently an exit queue of 15,358 validators, with an expected wait time of five days and four hours. This means that validators who attempt to exit now will have to wait for this duration before they can retrieve their 32 ETH. Moreover, the collective value of ETH set to be removed from the Ethereum validator chain is estimated to be over $1.09 billion.
Historical Moment for Ethereum as Mass Exit Event in Validator Queue
This mass exit event in the Ethereum validator queue marks a pivotal moment for the blockchain. Since the introduction of the option to withdraw staked ETH, this is the first time such a large-scale exit event has occurred. Friday witnessed the highest count of validator exits in the queue, thanks to Celsius, a prominent player in the crypto space. With over 905,000 validators currently on the Ethereum network, the impact of this mass exit event is unlikely to significantly affect the network or sway price action.
Waiting Time for Ethereum Validator Exits Reaches 5 Days, 4 Hours
At present, Ethereum validators who wish to exit are facing a wait time of five days and four hours. This delay is due to the backlog created by the mass exodus of validators from the network. Validators must wait for this duration before they can retrieve their staked 32 ETH. The significant number of validators seeking to exit and the time required for processing the requests have resulted in this extended waiting period.
Celsius Unstaking ETH from Ethereum Validator Chain for Restructuring Costs
The reason behind this mass exit event can be attributed to Celsius, which recently announced that it would be unstaking its existing ETH holdings. This decision is part of Celsius’ efforts to offset the restructuring costs it is currently facing. As the company undergoes a comprehensive restructuring process, it is recalling and rebalancing its assets to ensure ample liquidity. This includes unstaking all of its ETH holdings, and the scale of this process has resulted in the backlog observed in the Ethereum validator queue.
Impact of Celsius Unstaking: Barely a Dent in Ethereum Network and Price Action
Despite the massive amount of ETH set to be unstaked, the impact on the Ethereum network and price action is expected to be minimal. Currently, the Ethereum network has over 905,000 validators, with a total of 28.8 million ETH staked. This represents nearly 24% of the entire circulating supply of ETH. Given the large number of validators and the significant amount of ETH staked, the unstaking of $1.09 billion worth of ETH will likely have little effect on the network or the price of the digital asset.
Analyst comment
Positive news:
The mass exit event in the Ethereum validator queue marks a historical moment for the blockchain. It shows the growing popularity and adoption of Ethereum as a staking network.
Neutral news:
Validators who wish to exit the network are currently facing a wait time of five days and four hours due to the backlog. While this may be inconvenient for validators, it is a temporary issue that is expected to be resolved soon.
Neutral news:
Celsius’s decision to unstake its ETH holdings for restructuring costs has caused the mass exit event. This decision is driven by the company’s need for liquidity and is unlikely to have a major impact on the Ethereum network or price action.
As an analyst, it is expected that the market will not be significantly affected by the mass exodus of validators and the unstaking of $1.09 billion worth of ETH. The large number of validators and the substantial amount of ETH staked means that the impact on the network and price action is expected to be minimal.
