Bitwise Analyst: The increasing amount of ETH queued for withdrawal from staking may bring significant selling pressure to the market

ChainCatcher news, according to Decrypt, the Ethereum blockchain's validator exit queue reached 855,158 ETH on Friday, a record high. Bitwise senior investment strategist Juan Leon stated that the increasing amount of ETH set to be unstaked may be the reason behind the recent pullback of the asset. The queue of unstaked Ethereum typically exerts a negative impact on ETH prices and may lead to significant market selling pressure in the future.

Since staked tokens like stETH can trade at a discount, this discount reduces the value of collateral, triggering risk reduction, hedging, or even liquidation, ultimately resulting in spot ETH sell-offs. Leveraged "stETH loop" trades conducted through DeFi protocol liquidity pools will no longer be profitable, and traders creating synchronized selling pressure by closing positions and selling ETH to repay loans will also contribute to the sell-off.