Ethereum Validator Exit Queue Explodes To 521,000 ETH ATH, What This Means

Ethereum staking validator Everstake has announced that the validator exit queue has reached its highest point in one year. The expert further explained why this development might be a positive for the ETH ecosystem . Ethereum Validator Exit Queue Reaches New High In an X post , Everstake stated that the Ethereum validator exit queue has reached its highest level in over a year, representing approximately 520,000 ETH, which is equivalent to $1.9 billion at current prices. The validator noted that this queue will take around 19 days to fully clear. He further explained that this exit queue tracks how many validators are leaving Ethereum’s staking system . This typically raises concerns about a huge sell-off being imminent from these validators. However, Everstake assured that the surge in the validator queue is not a sign of fear or collapse. Instead, the expert claimed that it is a shift, whereby these validators are more likely to exit and restake, optimize, or rotate operators than leave the ETH ecosystem. Meanwhile, Everstake admitted that there is still the possibility that these validators may want to lock in profits, especially seeing as the Ethereum price just recently surged to a six-month high. He noted that it is natural to assume that some stakers are preparing to sell, which could create short-term sell pressure and potentially cause ETH to correct. However, on the other hand, the validator remarked that Ethereum is seeing record ETF demand, with billions of dollars in net flows since the beginning of this month. As such, BlackRock, Fidelity, and other ETH ETF issuers could match this potential sell pressure with similar buying pressure. Everstake also declared that this development with the validator exit queue is a “sign of health” and the freedom to move. He claimed that activity like this shows how mature ETH staking has become, with the protocol doing what it was designed to do. He added that this is what decentralization looks like. ETH ETFs Record Inflows For 15 Consecutive Days SoSo Value data shows that the Ethereum ETFs have now recorded 15 consecutive days of net inflows. This follows the net inflow of $231.23 million that they recorded on July 24. These funds currently hold $20.70 billion in net assets, representing 4.59% of Ethereum’s market capitalization . The significant inflows into these funds support Bitwise CIO Matt Hougan’s theory that ETH will soon witness a demand shock. He stated that this demand will come from the ETFs and corporate treasuries, predicting that they could purchase up to $20 billion of ETH in the next year. At the time of writing, the Ethereum price is trading at around $3,630, up over 1% in the last 24 hours, according to data from CoinMarketCap.