Ethereum Staking Under Pressure? Exit Queue Surges to $12B

Ethereum's PoS Network Faces Staking Exodus: What's Happening?

Ethereum's Proof-of-Stake (PoS) network is experiencing a significant shift, marked by a substantial increase in its exit queue. Approximately 150,000 ETH has left staking recently, reducing the Total Value Staked (TVS) to 36 million ETH. What's driving this change?

Record Exit Queue

The most notable factor is the surge in the Ethereum exit queue, which has ballooned to 2.63 million ETH ($12.3 billion), with a waiting period of about 45 days. This is a dramatic increase from the 616,000 ETH queued just a week prior – a staggering 327% jump. Conversely, the entry queue has decreased to 597,000 ETH, indicating a clear net-exit trend.

Kiln's Impact on Validator Queues

A significant portion of the exit surge can be attributed to Kiln, a professional ETH staking provider, which withdrew 1.6 million ETH following the SwissBorg hack. This single event accounts for approximately 61% of the current exit queue, suggesting that much of the outflow is rotational rather than a complete network exit.

Falling Staking APR and DeFi Opportunities

Another contributing factor is the decline in staking APR, which has fallen to a record low of 2.84%. This decrease is pushing capital towards higher-yield opportunities in the DeFi space. Ethereum's Total Value Locked (TVL) has reached a four-year high of $97 billion, indicating that ETH is not leaving the ecosystem but rather being reallocated to different protocols.

DeFi Protocols Attract Staked ETH

DeFi platforms like Pendle are offering attractive APRs on stETH (staked ETH tokens), further incentivizing users to move their assets. For example, Pendle's stETH pools are offering around 5.4% APR.

Implications and Outlook

While the exit queue surge may appear concerning, it primarily reflects a strategic repositioning of assets within the Ethereum ecosystem. The combination of lower staking rewards and attractive DeFi yields is driving this shift. Rather than signaling a lack of confidence in Ethereum, it represents a dynamic market responding to changing incentives.