Ethereum staking withdrawals surge past 780000 ETH after MetaMask incident

Ethereum (ETH) staking withdrawals have hit a record high this year, driven by MetaMask's precautionary move to pull validators after a security incident. The withdrawal queue ballooned from 166,000 ETH on September 29 to 851,000 ETH by October 2, a fivefold surge in just three days. As of October 5, the queue held 786,000 ETH, worth over $2 billion, with an estimated 14-day wait time. The Ethereum network limits daily withdrawals to 57,600 ETH to maintain security.

The majority of withdrawals stem from MetaMask, which operates validators for Lido. The company disclosed a security incident on September 30 and began removing affected validators. Ethereum security researcher Kaden estimated that 17,000 validators and 523,000 ETH were impacted. MetaMask later clarified that no customer funds were affected.

While withdrawals spike, demand for new staking has cooled. The entry queue has shrunk from 2 million ETH in early September to 1.5 million ETH, with wait times dropping from 35 to 25 days. Lido expects most withdrawals to be temporary, with affected validators re-entering staking within 45 days. The company assured stETH holders that no action is required from them.