Ethereum validator queue exceeds $10 billion. A record volume which revives fears of selling pressure, but which the institutional giants already seem to counterbalance.
In brief
- More than 10 billion ETH awaits withdrawal, sparking fears of a selloff.
- Grayscale compensates for this record withdrawal with 1.35 billion ETH injected into staking.
A record exit queue: should we fear selling pressure on ETH?
The Ethereum ecosystem is cashing in an unprecedented wave of withdrawals. More than 2.4 million ETH are currently waiting to leave staking. That’s almost $10.1 billion. This historic threshold extends the exit deadline to more than 41 days, a record recorded by Validator Queue.
This dynamic raises questions. After an 83% increase in the price of ETH over one year, some validators seem to be seeking to materialize their capital gains. Such mass of ETH on departure could exert downward pressure on the market if the funds end up liquidated.
Another worrying signal: the entrance queue remains five times shorter. Only 490,000 ETH are currently waiting to be stakedwith a deadline of 8.5 days. This imbalance between inputs and outputs can be interpreted as a pause in the commitment of validators, at least among individuals.
Despite everything, the security foundation of the Ethereum network remains robust. More than 1 million active validators are still participating in block validation, with 35.6 million ETH staked. This equates to around 30% of the total supply.
Reinforcement institutions: Grayscale and crypto treasuries stabilize the Ethereum network
Where historical validators fade, institutional actors advance. Grayscale, a pioneer in crypto investment products, has injected $1.35 billion of ETH into staking in just two days. This movement follows the launch of an ETF offering integrating staking as a source of passive yield.
In a single day, Grayscale deposited 272,000 ETH into the entry queue. The asset manager alone represents the majority of deposits awaiting activation.
The dynamics go beyond the Grayscale case alone. According to Iliya Kalchev, analyst at Nexo, entries into Ethereum ETFs exceeded $620 million in October. Corporate treasuries and funds now hold more than 10% of the total circulating supply.
This trend consolidates Ethereum's status as an asset with recognized yield. With this in mind, institutionalized staking strategies play a shock-absorbing role in the face of individual withdrawal movements.
Certainly, the short-term pressure is intriguing. Nevertheless, the massive movements of institutional investors perhaps herald a new era for Ethereum. Enough to imagine a new DeFi Summer!
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