Ethereum is seeing the largest validator exodus in crypto history, with over 1 million Ether tokens currently waiting to be withdrawn from staking through Ethereum’s proof-of-stake (PoS) network.
Ethereum’s exit queue surpassed 1 million Ether (ETH) worth $4.96 billion on Thursday. This marks the amount of Ether set for withdrawal by the network’s validators, who are responsible for adding new blocks and verifying transactions in proposed blocks, playing a vital role in the functioning of the blockchain network.
The mass exodus has extended the validator exit waiting time to a record 18 days and 16 hours, according to blockchain data from validatorqueue.com.
While this does not mean that all the validators are looking to sell their holdings, a significant portion of the almost $5 billion may be sold to lock in profits, considering that Ether has risen 72% over the past three months.
Ether validator queue. Source: validatorqueue.com
“The exit queue hitting 1 million ETH reflects healthy market dynamics rather than a cause for concern,” Marcin Kazmierczak, co-founder of RedStone blockchain oracle firm, told Cointelegraph, adding:
“What’s crucial to understand is that these exits pale in comparison to the institutional capital flowing into Ethereum.”
The “unprecedented demand” from public vehicles such as treasury firms and exchange-traded funds means that the validator sales are “easily absorbed by this institutional appetite,” he said.
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