Ethereum staking exit queue shrinks as MetaMask validator impact fades
The Ethereum staking withdrawal queue has seen a significant reduction, dropping from last week's peak of approximately 851,000 ETH to around 767,000 ETH. This decline follows a sharp increase triggered by MetaMask's withdrawal of validators. On September 29, the queue was only about 166,000 ETH, but it surged more than fivefold in just a few days, reaching roughly 2% of the total approximately 43.6 million ETH staked on Ethereum.
On September 30, MetaMask reported a security incident affecting part of its infrastructure, leading to the precautionary withdrawal of affected validators. An update on October 1 confirmed no evidence of compromised wallets or customer funds. MetaMask operates validators for the staking provider Lido, and Ethereum security researcher Kaden estimated that the precautionary withdrawal involved approximately 17,000 validators and about 523,000 ETH, though MetaMask has not confirmed this figure.
Lido expects the affected validators to exit gradually, with their balances withdrawn over approximately 45 days. During this period, the validators will miss out on rewards, but Lido assured stETH holders that no action is required. Meanwhile, demand for new staking has cooled, with approximately 1.5 million ETH waiting to enter the queue, with an estimated wait time of around 25 days.