Ethereum staking queues hit record lengths amid MetaMask exits
Ethereum's staking system is experiencing significant delays as both entry and exit queues grow longer. The exit queue, in particular, has surged to its longest point in 2023 due to precautionary validator exits linked to MetaMask. Following a security incident, MetaMask began pulling validators, causing the ether waiting to exit staking to jump from 166,000 ETH to 851,000 ETH in just three days. As of the latest update, approximately 786,000 ETH, valued at over $2 billion, remains in the exit queue with an estimated 14-day delay.
The daily withdrawal cap of around 57,600 ETH is designed to manage network risk, but the sudden spike in exits has stretched the queue. MetaMask's security incident, disclosed on September 30, has not affected customer funds, but the precautionary exits have led to missed rewards for affected validators. Lido, which also runs validators for MetaMask, expects the withdrawn ether to be restaked gradually over the next 45 days.
Meanwhile, demand for entering the staking system has cooled slightly. About 1.5 million ETH, worth roughly $4 billion, is currently waiting to enter the validator set with a 25-day wait, down from 2 million ETH and a 35-day wait in early September. The majority of the recent disruptions stems from MetaMask's validator activity, with estimates suggesting around 17,000 validators holding about 523,000 ETH are affected.
Ethereum's mechanism to cap the rate of validator entries and exits aims to maintain network stability. However, the current backlog highlights the challenges of managing large-scale validator activity, especially during unexpected events like security incidents.