MetaMask Withdrawal Causes Ethereum Staking Exit Queue to Surge
The Ethereum staking exit queue surged by over five times in just three days due to MetaMask's decision to withdraw validators from the network as a security precaution. According to data, the queue reached approximately 851,000 ETH on October 2, which is about 2% of the 43.6 million ETH staked. MetaMask accounted for most of the increase, with around 786,000 ETH remaining in the queue by Monday morning.
The estimated exit wait time is around 14 days, with a value of slightly over $2 billion. The sudden increase in withdrawals is due to the network's controls, which limit the number of validators that can enter or leave the staking system each day. MetaMask's action covered around 17,000 validators holding approximately 523,000 ETH, although the figures have not been confirmed.
Lido, which pools ETH from users and stakes it across Ethereum, expects the affected ETH to return to staking gradually. The process could take around 45 days, during which validators outside active staking will not earn rewards. StETH holders have been informed that they do not need to take action, as the protocol expects the final affected MetaMask validators to stop staking by October 7.