Ethereum stakers are increasingly seeking to withdraw their ETH, leading to concerns about potential sell pressure on the cryptocurrency. As of Friday, the Ethereum blockchain's validator exit queue reached 855,158 ETH, valued at approximately $3.7 billion, marking a record high. This growing queue is seen as a factor contributing to Ethereum's recent price dip of over 3%, occurring shortly after the asset approached its all-time high. The process of staking allows holders to lock up their ETH to secure the network, but with market uncertainties, stakers may wish to cash out or shift to less volatile assets. The Ethereum network's design limits the amount of ETH that can be unstaked at once, intending to maintain stability in its consensus mechanism. The increasing exit queue may further depress ETH prices, especially if staked versions of ETH trade at a discount, leading to synchronized selling as traders unwind positions. Despite these concerns, experts caution that while unstaking can influence prices, it typically does not cause abrupt crashes, acting rather as a perpetual supply increase under stress.

Source 🔗