Ethereum Exit Queue Hits $10b Record: Selling Pressure Concerns?

Ethereum has seen a massive surge in its validator exit queue, reaching over 2.4 million Ether valued at approximately $10 billion. This unprecedented activity reflects the highest number of withdrawals since the launch of its proof-of-stake network, resulting in an extended wait time of more than 41 days for those attempting to exit. The rise in withdrawals raises concerns about potential selling pressure, especially since the exit queue is significantly larger than the entry queue, which currently has about 490,000 Ether waiting to be staked. Despite the potential for increased selling, the Ethereum network's overall stability remains unaffected, with over a million active validators staking 35.6 million Ether, representing about 29.4% of its total supply. Institutional investors, notably Grayscale, continue to play a pivotal role in the ecosystem by depositing substantial amounts of Ether into the staking queue, which may mitigate the anticipated sell pressure. October alone has seen ETF inflows exceeding $620 million, indicating strong institutional interest in Ethereum as a yield-bearing asset.

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