The tail of whale staking on Ethereum has reached significant levels. Here’s why and all the possible consequences.
There is a noticeable increase in withdrawal and login queues on the Ethereum Proof-of-Stake (PoS) network.
According to Validatorqueue data, the amount of ETH waiting to be withdrawn from the network has reached 2.63 million as of today. This figure corresponds to approximately $12.28 billion, and the exit queue duration is calculated as 45 days and 18 hours.
Meanwhile, the amount of ETH waiting to enter the network is 634,000. This amount has a market value of approximately $2.97 billion, and the waiting time in the access queue is reported as 11 days.
The primary reason for the increase in withdrawal requests is that staking service provider Kiln has begun withdrawing its validator nodes from the system. The company is known to have staked approximately 1.6 million ETH. Kiln announced on September 10th that all Ethereum validator nodes will be gradually withdrawn to protect the integrity of staked assets following the hack of SwissBorg.
However, experts don’t expect Kiln’s move to create selling pressure in the market. It’s likely that the withdrawn ETH will be re-staking with new validator keys.
