With the exit queue wait time sitting at 45 days, it is no surprise that the entry queue is shrinking. If you want to sell your staked eth you now need to wait 45 days to do that, good luck timing the market if it's something you are interested in attempting to do.
So now more eth will be unstaked and more eth will be available to trade. Supply up, not good for price. With the expected rate cut coming I don't think the price is going to notice this right now, but if the exit queue wait time doesn't shrink, it will hurt eth at some point.
Why do the wait times for staking and unstaking need to be so long, why can't it be as fast as the network can process it, instantaneous? Shouldn't Ethereum be as efficient as possible? Let people decide if they want to be staked or unstaked, as fast as possible. If staking didn't have such a long lock up period, I wouldn't be surprised if the staking % was much higher. This mechanism seems designed to just create artificial supply constraints, pushing the price up to be dumped. Vitalik wants people to have confidence in the blockchain, not just have eth be a pump and dump speculative asset, right? The massive wait time on the exit queue is a danger to Ethereums health, in my opinion.
Am I wrong?
Eth staking entry queue shrinking amid exit surge. Potential for sharper corrections as eth climbs?
byu/GrossFleshSack inethtrader
Posted by GrossFleshSack
3 Comments
It’s up because the 6th largest ETH staker and one of the staking as a service companies Kiln voluntarily exited every single one of their 50K+ validators holding over 1.6M ETH. This was done as a security precaution. So, this is not 1.6M ETH exiting because people want to sell.
The staking entry/exit limits and queues are a security mechanism to protect the Ethereum network. It is very important.
Instantaneous unstaking could cause security issues. Potential attackers could unstake before penalties (“slashing”) hit.
Meanwhile you can get a liquid staking derivative like stETH if you want to try your luck timing the market.
!tip 1
Bullshit. I just got unstaked. I was waiting two weeks. Relax little please.