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Ethereum Validator Exodus Causes Network Stability and Price Concerns

The surge in Ethereum validators exiting the network leads to a bottleneck in the unstaking process,...
Key Metrics

16.22

Heat Index
  • Impact Level
    Medium
  • Scope Level
    Global
  • Last Update
    2025-11-04
Key Impacts
Negative Impacts (9)
Ethereum (ETH)
Liquid-Staking Sector
Rocket Pool Token (RPL)
Lido DAO Token (LDO)
Lido Staked Ether (stETH)
Bloomberg Galaxy Crypto Index (BGCI)
Total impacts: 10 | Positive: 0 | Negative: 9
Event Overview

The surge in Ethereum validators exiting the network leads to a bottleneck in the unstaking process, raising concerns over potential price volatility and network stability. The growing queue reflects underlying tensions in the blockchain's economic and operational dynamics.

Collect Records
Ethereum's Validator Exit Queue Swells, Causing Concerns
2025-07-18 07:50

Ethereum is experiencing a significant increase in the number of validators exiting, with the unstaking queue growing parabolically. Since mid-August, the validator exit line has swelled by 188%, leading to a gridlock in the ETH exit queue. This trend is causing concerns about its potential impact on the price and overall network stability. As of mid-September, approximately 2.5 million ETH (valued at around $11.25 billion) is waiting to exit the validator set, resulting in wait times exceeding 46 days, the longest period in Ethereum's staking history. On September 9, Kiln, a major infrastructure provider, decided to exit all its validators as a precaution due to recent security incidents, such as the NPM supply chain attack and the SwissBorg breach, adding about 1.6 million ETH to the exit queue.

Total records: 1
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