Over $3.3 Billion in ETH Waiting to be Unstaked

Table of Contents

According to data from BeaconChain, the Ethereum validator exit queue has reached a record high of approximately 900,000 ETH (valued at around $3.3 billion), the highest level in 18 months.

This surge follows a 160% increase in ETH prices since April, peaking at $3,844 in July 2025. Compared to last month, this figure has significantly risen from about $1.9 billion.

While withdrawal volumes have surged, new staking demand has been declining, with the exit queue now larger than the list of new validators, indicating a decrease in demand from new stakers.

Main Reasons for the ETH Withdrawal Wave

Profit-Taking After Strong Price Surge: With the current ETH price around $4,780, near its all-time high, many validators want to lock in profits from the previous increase.
Reduced Leverage in Staking: The reduction of leverage in staking loops, as borrowing and funding costs rise, has prompted many investors to withdraw ETH to manage risk.
Concerns About LST Depegging: Fears regarding liquid staking tokens (LST) depegging have led many to withdraw ETH, rotating between stETH and ETH to exploit price differences. Lido, EthFi, and Coinbase have been identified as significant recent sources of unstaking.
Position Rebalancing Ahead of New Products: Some validators may be restructuring their positions in anticipation of new staking products emerging in the U.S., after the SEC confirmed that staking and liquid staking do not violate federal securities regulations.

Market Impact and Significance

“Pressure Valve” Mechanism: The validator exit queue acts as a “pressure valve” to limit withdrawals from occurring too quickly, helping to maintain the stability of the Ethereum network. The current waiting time exceeds 10 days.
Not Necessarily Selling Pressure: Importantly, exiting does not mean that ETH will be sold immediately. Many validators may restake or allocate funds to other DeFi applications, maintaining liquidity within the ecosystem.
Risk Management Trend: The record-high exit queue reflects a trend toward risk reduction and leverage management in the staking ecosystem, indicating the market’s maturation.

Notably, ETH has added over $150 billion to its market capitalization in the first two weeks of August.

This wave of ETH withdrawals coincides with strong inflows into ETH spot ETF funds, suggesting that the market is entering a correction phase while still retaining demand from institutional investors.

(2 votes)