NEW YORK — Ethereum’s staking ecosystem is facing unprecedented congestion, with 910,461 ETH, valued at approximately $3.9 billion, currently stuck in the network’s exit queue as of Tuesday, August 19, 2025. The backlog, one of the largest since Ethereum’s shift to proof-of-stake in 2022, reflects a surge in investors seeking to unstake their Ether amid market shifts and anticipation of staking-enabled ETFs, according to CoinDesk.
The exit queue, which processes validator withdrawals, has swelled to a 16-day wait, driven by major platforms like Lido and Coinbase, which account for 40% and 15% of the queued ETH, respectively. “This level of unstaking suggests investors are repositioning for liquidity or new opportunities,” blockchain analyst Sarah Tran told CoinDesk. With 30% of Ethereum’s total supply about 36 million ETH staked, the queue represents 2.5% of the staked pool, per Dune Analytics.
Key factors fueling the unstaking surge include:
- ETF Speculation: Anticipation of U.S.-approved ETH staking ETFs by Q4 2025.
- Market Dynamics: ETH’s price near $4,300, prompting profit-taking after a 25% rally.
- Liquidity Needs: Institutional investors freeing capital for alternative DeFi strategies.
The rush comes as spot ETH ETFs, launched in July 2024, have accumulated $12 billion in assets, boosting institutional interest. However, a potential price drop below $4,000 could trigger $1.5 billion in liquidations, analysts warn. Posts on X, including from @CryptoInsights, noted the queue’s size as a “pivotal moment” for Ethereum’s market. While the backlog tests the network’s capacity, it also highlights Ethereum’s growing role in decentralized finance, with validators expected to ease pressure as ETF clarity emerges.
Source: CoinDesk
