Something big is happening in Ethereum staking. The Ethereum validator exit queue just hit its highest level in over a year - more than 520,000 ETH that’s over $1.9 billion at current prices, lined up to leave. This queue will take ~19 days to fully clear. Thread: 👇

1/ The validator exit queue tracks how many validators are leaving Ethereum’s staking system. And in the past few days, the number has absolutely surged.

2/ The most important thing, guys, this isn’t a sign of fear or collapse. It’s a shift. Validators are likely exiting to restake, optimize or rotate operators, not leaving Ethereum. On the other hand, they may want to lock in profits. Because it's natural to assume that some stakers are preparing to sell, which could create short-term sell pressure and potentially lead to a price correction. But at the same time, we’re seeing record ETF demand. • Billions of dollars in net flows since July. • BlackRock, Fidelity, and others are buying.

3/ We do believe that it is a sign of health: the freedom to move. In fact, activity like this shows how mature Ethereum staking has become. It’s the protocol doing what it was designed to do. And that’s what decentralization looks like. Source: