Ethereum withdrawal queue surges 392%: MetaMask incident may lead to 523,000 ETH queued for withdrawal

Original Title: Ethereum unstaking queue surges 392% since October start

Original Author: Estefano Gomez

Original Compilation: Deep Tide TechFlow

Abstract: Since the beginning of October, the Ethereum validator exit queue has surged by approximately 392%, peaking at nearly 850,000 ETH waiting for about 14.77 days; of this, about 523,000 ETH came from the preventive exit of MetaMask Staking after its infrastructure was compromised, significantly associated with Lido operations. For ETH and LSD holders, this indicates a prolonged short-term selling pressure, with a hard signal that a single infrastructure decision can impact a much larger staking pool.

A security scare at MetaMask Staking, combined with some operations that seem to realize profits, has pushed the Ethereum validator exit queue to its highest level this year.

According to data circulating on X, since the beginning of October, the amount of Ethereum unstaked has jumped by 392%. By October 2, approximately 850,000 ETH were queued to leave the network's validators.

This is the longest exit queue seen for Ethereum this year. It occurred in the same week that MetaMask Staking informed users that part of its infrastructure had been compromised.

What is Driving the Exit Queue Up

By October 2, the estimated waiting time for exits had reached about 14.77 days. In late September, the exit volume was still at a low to moderate level of about 100,000 ETH.

The peak of the queue was about 850,736 ETH. The total staked ETH across the network is approximately 43.6 million, with about 878,000 active validators. Therefore, the amount waiting to exit is close to 2% of the total staked supply.

MetaMask Staking Incident

On September 30, MetaMask Staking disclosed that its infrastructure had been compromised. About 0.36 ETH, spanning 18 blocks of block rewards, was briefly transferred. MetaMask stated that user wallets and sensitive data were unaffected.

MetaMask subsequently arranged for nearly 17,000 validators to exit, holding a total of about 523,000 ETH, a significant portion of which is tied to Lido's operations. The exits were characterized as a precautionary measure and are expected to be completed by October 7.

Of the approximately 850,000 ETH queued for exit, about 523,000 ETH came solely from MetaMask's validators.

Not All Risk Aversion

Jiang Zhuoer, founder of Litecoin Pool, stated that the surge in the queue suggests that some holders are locking in profits at the current price.

Prices Have Remained Almost Unchanged

From September 30 to October 2, ETH traded in a narrow range of $2,686 to $2,725. The waiting time approaching 14.77 days means that any selling will be spread out rather than dumped into the market all at once.

What This Means for Stakers and the Market

The exits from MetaMask are expected to be completed by October 7. Once cleared, unless there are new exits on top, the queue should shrink significantly.

Since a considerable portion of the exits is related to Lido operations, this event highlights that decisions made by a single infrastructure partner can impact a much larger staking ETH pool.

There are still about 43.6 million ETH staked across approximately 878,000 validators. Even at peak times, the exit queue is just a small fraction of this total amount.