CoinDesk
Ethereum had about 786,000 ETH waiting to exit staking on Monday, worth just over $2 billion, with an estimated wait of nearly 14 days. The queue climbed from roughly 166,000 ETH on Sept. 29 to about 851,000 ETH on Oct. 2, after MetaMask began withdrawing validators following a security incident. Separately, nearly 1.5 million ETH was waiting to enter staking, with an estimated 25-day wait.
Why it matters
The exit surge is concentrated in a precautionary move by MetaMask, which runs validators for Lido. MetaMask said its investigation found no indication that wallets or customer funds were affected. Lido expects the withdrawn ether to be gradually restaked after validators exit and balances are withdrawn, a process it estimates could take up to 45 days. Affected validators will miss rewards while offline.
Ethereum limits how quickly validators can enter or leave to protect network security. At current limits, about 57,600 ETH can join and the same amount can exit each day, so large movements accumulate in queues rather than moving immediately. Lido said stETH holders do not need to take action.
Market impact
The longer exit queue signals a temporary withdrawal overhang, not evidence in the seed of a broad loss of confidence or customer-fund exposure. The scale is notable: the Oct. 2 peak of roughly 851,000 ETH exceeded the approximately 476,000 ETH seen during a surge in May, while representing about 2% of the 43.6 million ETH staked.
Meanwhile, entry demand has cooled. About 2 million ETH was waiting to stake in early September, with a roughly 35-day wait; the latest queue is about 1.5 million ETH and 25 days. The key near-term marker is whether the withdrawn ETH returns to staking as Lido expects, with the last affected MetaMask validators expected to stop staking by Oct. 7.
Frequently asked questions
-
Why did Ethereum’s staking exit queue surge?
MetaMask began withdrawing validators after a security incident. The queue grew from roughly 166,000 ETH on Sept. 29 to about 851,000 ETH on Oct. 2.
-
Did MetaMask say customer funds or wallets were affected?
No. MetaMask said its investigation found no indication that wallets or customer funds had been affected.
-
How long could it take for the withdrawn ETH to be restaked?
Lido expects the process of validator exits, withdrawals and restaking to take up to about 45 days.
-
Do stETH holders need to take action?
No. Lido said stETH holders do not need to take action.
-
How has demand to enter Ethereum staking changed?
About 1.5 million ETH was waiting to enter staking, down from roughly 2 million in early September. The estimated wait fell from about 35 days to 25.
WuBlockchain
Lookonchain
CryptoSlate
CoinTelegraph
Altcoin Daily
Crypto Rank News