Ethereum Exit Queue Surges 392% Amid MetaMask Hack Fears

The Ethereum withdrawal queue surged 392% in early October, with approximately 850,000 ETH waiting to leave the network's validator set. This marks the longest exit queue seen on Ethereum this year, with an estimated wait time of 14.77 days. The spike in the queue is primarily due to precautionary withdrawals of around 523,000 ETH following a MetaMask hack.

The incident, which occurred on September 30, involved a breach of MetaMask's infrastructure, resulting in the temporary diversion of 0.36 ETH in block rewards. MetaMask subsequently initiated exits for nearly 17,000 validators holding a combined ~523,000 ETH, with a significant portion tied to Lido operations.

Jiang Zhuoer, founder of Litepool, noted that the spike in the queue suggests some holders are using current prices to lock in profits. The prices of ETH remained largely unchanged between September 30 and October 2, trading in a narrow band between $2,686 and $2,725.