NEW YORK — Ethereum’s staking ecosystem is under strain as its unstaking queue hit an all-time high of $3.8 billion on Sunday, August 17, 2025, with investors facing a 15-day wait to withdraw their Ether (ETH). The surge, driven by major platforms Lido, EthFi, and Coinbase, reflects a rush to unlock funds amid market shifts, according to Cointelegraph. The backlog, totaling 877,106 ETH, underscores growing activity in Ethereum’s proof-of-stake network, where 29.5% of the total supply roughly 35.3 million ETHremains staked.
The exit queue’s length, the longest since Ethereum’s 2022 transition to proof-of-stake, is fueled by large validators. Lido accounts for 285,000 ETH, EthFi 134,000 ETH, and Coinbase 113,000 ETH, per Coinomedia. Decentralized finance analyst Ignas noted that the withdrawals may signal strategic repositioning rather than mass selling. “Investors could be freeing up liquidity for upcoming ETH staking ETFs,” he told Cointelegraph, pointing to a 140% surge in institutional and ETF holdings since May 1, now at 10 million ETH.
Key factors driving the unstaking wave include:
- Market Volatility: A recent U.S. Producer Price Index report sparked inflation fears, prompting some to liquidate.
- ETF Anticipation: Potential ETH staking ETF approvals by October 2025 may be encouraging reallocation.
- Profit-Taking: ETH’s price, hovering near $4,500, may be tempting investors to cash out after a strong 2025 rally.
Despite the backlog, institutional accumulation could stabilize ETH’s price. Strategic reserves and spot ETH ETFs have absorbed significant supply, climbing from 4.1 million ETH to over 10 million since May, per strategicethreserve.xyz. However, analysts warn that a drop below $4,200 could trigger $1.2 billion in liquidations, with support levels between $4,100 and $3,900 critical.
The queue highlights Ethereum’s maturing market but raises questions about scalability. “This stress-tests the network’s validator system,” an analyst noted to The Currency Analytics. As investors await potential ETF launches and monitor price levels, the unstaking surge could set the stage for volatility or a bullish push toward $5,000, depending on institutional flows.
