Ethereum News Today: Ethereum Validator Exit Queue Surpasses $2.3 Billion Amid 160% Price Rally

Ethereum’s validator exit queue has surged to over $2.3 billion worth of ETH, marking the largest such backlog since early 2024. According to data from validatorqueue.com, nearly 625,000 ETH are waiting to exit the network, with withdrawal delays stretching beyond 10 days. The exodus is largely driven by stakers seeking to cash in profits after ETH’s 160% price rally from its early April low. Analysts note that this pattern is typical during price surges, as both retail and institutional participants unstake to lock in gains [1].

The increased unstaking activity is also linked to movements in the market by large institutional players. Ethereum-focused treasury firms, such as SharpLink Gaming and Bitmine, have been aggressively accumulating ETH in recent weeks, with some accepting in-kind contributions. This has prompted institutional token holders to unstake their holdings and transfer them directly to these firms [1].

Notably, Tron founder Justin Sun’s recent request to withdraw 60,000 ETH from the liquid staking platform Lido further contributed to the congestion. According to Arkham Intelligence, the withdrawal was followed by a broader unwinding of positions among traders who had been using looping strategies to enhance yields. As of July 23, more than 237,000 ETH were waiting to be unstaked on Lido, signaling a broader trend of liquidity shifts [1].

Despite the surge in unstaking, pressure on ETH’s price may remain limited due to strong demand for staking. Over 343,000 ETH are currently in the queue to activate new validators, with entry delays stretching to over six days—the longest since April 2024. This reflects a robust appetite for Ethereum staking, especially after the U.S. Securities and Exchange Commission (SEC) clarified on May 29 that staking does not violate securities laws, thereby boosting institutional confidence [1].

Active validator numbers have also hit record highs, with the count increasing by over 54,000 since late May to nearly 1.1 million. Andy Cronk of staking provider Figment noted that since the SEC’s guidance, institutional staking delegations on Ethereum have more than doubled, with queue times rising by over 360%—a trend in line with the recent price action [1].

While the exit queue has reached record levels, the simultaneous influx of staking demand suggests that the market remains in a state of dynamic balance. The interplay between profit-taking and new staking activity highlights the ongoing evolution of Ethereum’s proof-of-stake model and the broader ecosystem’s resilience amid rapid price swings [1].

Source: [1] Ethereum Validator Exit Queue Nears $2B as Stakers Rush to Exit After 160% Rally (https://www.coindesk.com/tech/2025/07/22/ethereum-validator-exit-queue-nears-2b-as-stakers-rush-to-exit-after-160-rally)