Ethereum's Proof-of-Stake network is experiencing significant pressure as its exit queue surged to a record 2.63 million ETH ($12.3 billion), requiring a 45-day waiting period for unstaking. This represents a dramatic 327% increase from just 616,000 ETH a week ago, marking the largest weekly drawdown in Total Value Staked (TVS) with approximately 150,000 ETH leaving staking contracts.
The spike was largely driven by Kiln, a professional staking provider, which withdrew 1.6 million ETH (61% of the current exit queue) following the SwissBorg hack. Meanwhile, the entry queue dropped to 597,000 ETH ($3 billion) from 823,000 ETH, creating a clear net-exit outlook for the network.
Analysts indicate this movement represents strategic repositioning rather than weak conviction in Ethereum. Staking APR has fallen to a record low of 2.84%, prompting capital rotation into higher-yield DeFi opportunities. Pendle's stETH pools, for example, are offering around 5.4% APR, making DeFi more attractive for yield-seeking investors.
CryptoQuant researchers note that staking inflows "remain robust" and exchange inflows of unstaked ETH haven't accelerated significantly, suggesting most unstaked ETH hasn't translated into immediate market supply. ETH price has maintained relative stability, trading around $4,550 and remaining just 6.5% below its August all-time high of $4,946.