On July 23, the Ethereum validator exit queue reached its longest delay in over a year, signaling a significant uptick in staker withdrawals amid a recent surge in ETH prices. According to validatorqueue data, approximately 519,000 ETH—valued at around $1.92 billion—are currently queued for exit, marking the largest backlog since January 2024 and resulting in withdrawal delays exceeding nine days. Andy Cronk, co-founder of staking provider Figment, noted that both retail and institutional investors tend to unstake and liquidate holdings to secure profits during price rallies. Additionally, institutional unstaking may be influenced by transitions in custodial services or wallet infrastructure.
Despite the increased exit activity, the market is not experiencing significant selling pressure due to robust demand from new validators entering the network. Presently, 357,000 ETH, worth approximately $1.3 billion, are queued for entry, with admission delays surpassing six days—the longest since April 2024. This influx is partly driven by institutional interest, bolstered by the SEC’s clarification that staking activities remain compliant with regulations. Active validators have surged by 54,000 since late May, reaching a record high near 1.1 million.