The amount of Ether (ETH) queued for unstaking has reached a staggering $12 billion, with a wait time of 44 days, signaling a significant trend among investors looking to capitalize on yearly profits. The record number, exceeding 2.6 million ETH, showcases the largest ever withdrawal request recorded from the network’s validators, who play a crucial role in maintaining the Ethereum blockchain.
Data from ValidatorQueue indicates that the total number of active validators is over 1.05 million, with 29.4% of Ethereum’s total supply—approximately 35.6 million ETH—currently staked. This uptick in the unstaking queue has been labeled as the most substantial exit of validators in the history of crypto, raising questions about potential market impacts.
While the unprecedented withdrawal queue may suggest that a large portion of the over $12 billion could be sold off, it is important to note that not all validators are necessarily looking to liquidate their holdings. The recent price surge of Ether, which has risen 97% over the past year, has prompted some to secure profits by unstaking. Macro analyst MartyPary specifically highlighted the record high in liquidations, while crypto YouTuber Lark Davis pointed out the potential for heavy sell pressure stemming from these developments.
The Ethereum staking entry queue has also reached its lowest level in a month, contributing to concerns of a market sell-off. At present, more than 512,755 ETH, valued at about $2.3 billion, are in the queue to be staked, a significant decrease from 959,717 ETH just weeks prior. This drop indicates waning demand for staking during this tumultuous time.
On a more optimistic note, data reveals that the holdings of strategic reserves and spot ETH exchange-traded funds (ETFs) have surged by 116% since July 1, climbing from approximately 5.4 million ETH to nearly 11.8 million ETH. This accumulation, largely attributed to major institutional and corporate players, suggests that heavy buying is absorbing much of the sell pressure generated by the increasing exit queue. Many of these entities are likely to stake ETH again for additional yields, potentially boosting the entry queue in future weeks.
Analysts are also speculating on the potential release of ETH staking ETFs, which could prompt some investors to liquidate a portion of their holdings while keeping broader exposure to ETH. Although the SEC’s final deadline for approving these ETFs is set for April 2026, some believe that approvals could arrive sooner, possibly in October 2025.
In the week prior, capital flowed into crypto exchange-traded products (ETPs) noticeably, with Ethereum investment products alone attracting $646 million in inflows. This uptick underscores a resurgence in institutional interest in Ethereum, despite concerns surrounding the exit queue and market volatility.
Overall, while the record high in unstaked Ether raises awareness of potential market shifts, the underlying institutional support could serve to stabilize the ecosystem moving forward. Investors are advised to remain vigilant, as every trading decision carries inherent risks.
