Ethereum sees biggest staking withdrawals yet — $3.9B exits in days

Ethereum is facing its biggest withdrawal crunch yet, with over $3.9 billion worth of ETH stuck in line to exit staking. More than 910,000 ETH is now locked in the so-called “exit queue,” forcing validators to wait an average of 16 days to retrieve their funds — the longest delay since Ethereum shifted to proof-of-stake in 2022.

Record-breaking Ethereum exit queue

Charts from the Validator Queue dashboard confirm that this is the longest line of stakers seeking to withdraw since Ethereum moved away from proof-of-work.

According to the data, demand for exits is being driven primarily by two major staking providers — Lido and Coinbase.

• Lido accounts for 40% of ETH waiting to leave.

• Coinbase represents 15% of the queue.

Combined, these two platforms make up more than half of the total requests in the Ethereum exit queue.

Data shows that validator exit requests have been steadily climbing over the past month. On July 21, the network recorded 400,000 ETH in exits, compared to just 350,000 ETH in new entries. By July 25, the exit queue had surged past 700,000 ETH, a staggering 70% increase in just two weeks.

Although the queue briefly dipped to 400,000 ETH on August 6, it quickly accelerated again, reaching nearly one million ETH by mid-August. As of August 19, entry requests totaled 268,217 ETH, while the Ethereum exit queue swelled to 910,000 ETH.

Despite these exits, Ethereum’s staking ecosystem remains massive, with 35.6 million ETH staked — around 29.4% of the total supply.

Why are all the Validators leaving the space?

The spike in the Ethereum exit queue is not purely technical — it’s also being driven by investor sentiment and institutional positioning.

One factor is speculation around potential U.S. spot Ethereum staking ETFs, expected later this year. Many investors are choosing to unwind validator positions to prepare capital for these new products.

Ethereum’s recent 25% price rally, which pushed ETH near $4,230, has also motivated stakers to take profits. Institutional players are reallocating capital toward strategies offering higher returns outside of Ethereum’s validator system.

Crypto developer Artem Chystiakov believes the record Ethereum exit queue may actually benefit the network in the long term.

“The exit queue is good. The number of Ethereum validators really must go down. Almost 1.1 million active is quite insane, to be honest. EIP-7251 consolidation helps, but not as effectively as expected,” Chystiakov shared on X (formerly Twitter).

Industry analysts echo this sentiment, arguing that while the exit queue appears alarming, it may help rebalance validator demand and reduce inefficiencies in the staking ecosystem.

What this means for Ethereum

While the Ethereum exit queue suggests some validators are cashing out, Ethereum’s staking base remains resilient. With more than one-third of ETH supply locked in staking contracts, the network retains strong support.

However, extended wait times — now averaging over two weeks — highlight both the growing pains of a maturing system and the influence of centralized staking providers like Lido and Coinbase.

Market watchers will be closely monitoring whether the Ethereum exit queue continues to grow in the lead-up to potential ETF approvals and as Ethereum’s price trends higher.

The current Ethereum exit queue, worth nearly $3.9 billion, underscores shifting dynamics within the staking ecosystem.

While exits are surging to record highs, the overall network remains stable with tens of millions of ETH still staked.

For some, the exit queue is a sign of growing institutional repositioning. For others, it’s simply Ethereum’s validator system working as designed.

Either way, the Ethereum exit queue has become one of the most closely watched indicators of Ethereum’s evolving market landscape.