Ethereum Validator Exit Queue Hits Record 16400 Amid Celsius ETH Unstaking Plans

Ethereum (ETH) validator exit queue attained a peak at over 16,400 amid Celsius’ plans of ETH unstaking. The waiting time for validators in the queue had extended to more than 5 days. This abrupt surge in validator exit queues could be linked to Celsius, the bankrupt crypto lending platform. The crypto lender recently confirmed its initiation of recalling and rebalancing crypto assets, including Ethereum to repay its creditors.

Celsius ETH Unstaking Plans

Celsius, entrenched in bankruptcy proceedings since its Chapter 11 filing in July 2022, has strategically begun shifting assets to guarantee ample liquidity in anticipation of potential asset distributions. Thereafter, in a recent post on X, Celsius wrote, “The significant unstaking activity in the next few days will unlock ETH to ensure timely distributions to creditors.”

This comes after the firm announced that their creditors would receive BTC and ETH distributions, according to the approved plan. Moreover, the latest move by Celsius carries positive implications for customers who have patiently awaited the return of their funds after 18 months of uncertainty.

The liberated Ethereum from this unstaking operation will serve a dual purpose for Celsius. Apart from repaying creditors, it will be employed to offset certain costs incurred throughout the restructuring process, providing financial maneuverability.

Also Read: Judge Approves Celsius Network’s Shift to Bitcoin Mining Company

According to data from Nansen, a blockchain analytics organization, nearly one-third of the ETH currently in the pending withdrawal queue is attributable to Celsius. The crypto lender’s 32% share accounts for a staggering 206,300 ETH. Its withdrawal share is valued at approximately $467 million based on the price of $2264.64 at press time.

ETH Validator Exit Queue Spike

Furthermore, Nansen data revealed that 19,906 validators were awaiting a complete exit a few hours before the massive validator exit queue was cleared. In addition, the stats noted that a total of 637,564 ETH staking was awaiting a full exit.

According to Validator Queue analytics, 16,425 validators exited staked ETH positions on Friday, January 5, 2024. Additionally, it’s worth noting that the unprecedented spike led to an all-time high in the validator exit queue on Beacon Chain. The wait time for clearing the queue was recorded to be 5 days

The recent spike comes exactly a month after the ETH validator queue recorded a peak in December. The network witnessed an exit of 3,829 validators on December 5, 2023. Currently, the number of active validators is 905,879. Moreover, the total staked ETH figure exceeds 28.9 million, representing 24.05% of the total supply.

Also Read: Ethereum Layer-2 Transactions Skyrocket 330% In 2023, ARB And OP Take The Lead