According to CoinDesk, Ethereum validators are experiencing delays of several days in withdrawing their staked ether (ETH), with the now-defunct crypto lender Celsius being partially responsible for the backlog. Validators stake ETH to help secure the Ethereum network in exchange for a steady interest rate, but there is a cap on the number of validators that can unstake their tokens on any given day, leading to the current backlog. The exit queue for Ethereum validators surged to over 16,000 on Friday, up from just 26 the previous day, as per blockchain data from validatorqueue.com. This queue represents more than $1 billion worth of staked ETH at current prices, but the large backlog means it could take up to 5.6 days for that ETH to be returned to its depositors.
Celsius, the crypto lender that filed for bankruptcy in 2022 and is now undergoing restructuring, appears to be responsible for the current delays. Celsius announced on Thursday that the 'significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors.' Blockchain analytics firm Nansen reports that 32% of all ETH waiting to be withdrawn has been requested by Celsius, while 54.7% is from Figment, a staking service that Celsius reportedly uses. Ethereum has previously experienced longer lines. In April, Ethereum validators had to wait over 17 days to get their staked ETH back following the blockchain's Shapella upgrade, which enabled staked ETH withdrawals for the first time. At that time, around 28,000 validators were in line to leave the network. Since then, requests for exiting the blockchain have decreased significantly, and by the end of May, it took less than a day for a validator to leave the network, according to blockchain data dashboard validatorqueue.com.
