Ethereum validator exit hits all-time high of 15,000 as Celsius announces mass ETH unstaking

Ethereum on-chain data shows that the current exit queue has a wait time of 5 days and 4 hours.
Celsius announced that it would be unstaking its existing ETH holdings in order to offset restructuring costs.
The collective value of ETH set to be removed from the Ethereum validator chain is over $1.09 billion.

Ethereum Shanghai update introduced the option to withdraw the ETH staked by investors, essentially giving validators the option to exit the market. Since then, Friday marked the biggest day for the network as it noted the highest count of validator exits in the queue, all thanks to Celsius

Ethereum validator backlog

Ethereum is witnessing a historical moment. For the first time since it activated the withdrawal of staked ETH, a mass exit event can be witnessed. At the time of writing, the chain had an exit queue of 15,358 validators, and the expected wait time is presently five days and 4 hours.

This means that any validator that attempts to exit now will have to wait for five days before they can get their 32 ETH back. Furthermore, based on the value of one validator staking being 32 ETH, the chain is set to note an outflow of $1.09 billion worth of staking over the next few days.

Ethereum validator exit queue

However, despite being such a humungous figure, it will barely make a dent in the network or sway the price action. This is because, at the moment, Ethereum has over 905,000 validators, and the total amount staked on the network is 28.8 million ETH. This represents nearly 24% of the entire circulating supply of the digital asset.

The reason behind the backlog

Celsius, a prominent name in the crypto space until its bankruptcy in July 2022, is in the process of restructuring the entire company. This includes asset distribution, for which Celsius has begun recalling and rebalancing assets to ensure ample liquidity.

Consequentially, the company announced that it would be unstaking all its existing ETH holdings in order to offset the costs it has been facing throughout the restructuring process. It also addressed the backlog caused by this decision, stating that the process would take a few days given the enormous amount of ETH set to be unstacked.

As a reminder, eligible creditors will receive in-kind distributions of BTC and ETH as outlined in the approved Plan
— Celsius (@CelsiusNetwork) January 5, 2024

Share: Cryptos feed

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.