The exit queue for validators on the Ethereum blockchain reached above 16,000, a record high.
There has been an uptick in the number of validators waiting in line to cash out their staked ether from the Ethereum network. Results from ValidatorQueue indicate that the number of people waiting to depart has surpassed sixteen thousand. The total amount in the queue exceeds 510,000 ethers ($1.1 billion), and each validator is limited to a maximum stake of 32 ethers.
The whole withdrawal procedure will take longer than 14 days, and the exit queue processing period is five days.
This is happening at the same time as Celsius, which is undergoing reorganization after its bankruptcy filing last year, announced its intention to liquidate its holdings in the Ethereum network and transfer the proceeds to its creditors.
One factor that has increased the wait time for validators is Celsius’ withdrawal request, which is almost 200,000 ETH ($450 million). Having said that, Celsius seems to be in company. Among the validators awaiting withdrawal, 54% (350,000 ETH) are identified as Figment, a staking service. Celsius accounts for only 32% of departures, according to Nansen statistics.
On the other hand, 21 Shares analyst Tom Wan believes that the objects labelled as Figment by Nansen could really be Celsius. The probability of the withdrawal by Figment becoming Celsius’s property is similarly high. Celsius re-staked 197k ETH via Figment in June after redeeming 428k stETH from Lido, according to Wan.
The departure queue for validators has seen a rise, while the admission queue for new validators is almost at zero, the same as last week. Based on the churn limit—13 validators per epoch or 2,925 validators entering or leaving the network per day—the time it takes to complete the entrance and departure queues is calculated.
At the moment, the staking rewards reference rate—also called the staking yield—for Ethereum validators is at 3.4%. When compared to the yield of about 8% in May 2023, this number indicates a decline.
