Long Wait for Ether Profits as Exit Queue Surges to Record 45 Days
The Ethereum exit queue is at its highest ever waiting time, with a whopping 45 days to unstake the asset.
The exit queue spiked to its highest level of 2.6 million ETH late last week and has remained high over the weekend, extending the waiting time, according to ValitatorQueue.
The big move came as Ether prices returned to top $4,700 during the weekend, having largely held on to those gains over the weekend.
Validator Rebalancing
Crypto analyst Colin Talks Crypto said that the waiting period will likely increase “as bull run euphoria intensifies in the late stage, as laggards realize they have to unstake.”
The analyst has previously said that staking was a “trap” because you cannot instantly access funds. However, most stakeholders are long-term investors and not day traders.
According to CryptoQuant, staking inflows “remain robust,” and investors are still locking ETH into the Beacon Chain, signaling confidence in Ethereum’s long-term value and yield potential.”
The entry queue currently stands at about 600,000 ETH. There were no massive inflows of unstaked ETH to exchanges, researchers observed before adding that, historically, spikes in exchange inflows correlate with selling pressure, but current netflows remain moderate.
Unless exchange inflows accelerate, the exit queue surge may have a limited short-term bearish effect, they added. Additionally, Kiln Finance’s mass withdrawal over a security hack has contributed to a large part of the exit queue spike.
ETH Price Holds Up
Ether prices are holding their ground after topping $4,700 again over the weekend. However, the asset lost its momentum and dropped to $4,550 as of press time, but it’s still at the upper bounds of a range-bound channel that formed five weeks ago.
ETH is currently just 6.5% away from its August 24 all-time high of $4,946 and is still pegged to reach $5,000 this year.
The post Long Wait for Ether Profits as Exit Queue Surges to Record 45 Days appeared first on CryptoPotato.
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