#Ethereum Validator Exit Queue Hits All-Time High of 744,000 Validators


The $ETH validator exit queue reached 744,000 validators on July 26, the highest point in network history.


The exit queue averaged under 1,000 validators daily just two weeks before the massive spike.


A liquidity shock on #Aave drove wETH borrow rates from 3% to double digits, triggering mass exits.


Roughly 167,000 $ETH worth over $630 million was withdrawn from #Aave lending pools.


Higher borrowing costs made popular stETH/LRT loop leverage strategies unprofitable, forcing deleveraging.


Traders redeemed $stETH and liquid restaking tokens via validator withdrawals to obtain raw $ETH.


#EigenLayer reopening deposit caps also prompted operators to exit native validators for restaking opportunities.


The platform saw $940 million in net inflows on July 21 as validators migrated to restaked positions.

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July 29, 2025 at 4:55 PM
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