Ethereum unstaking queue surges by 392%: MetaMask incident may lead to 523,000 ETH waiting to exit

Author: Estefano Gomez

Translation: TechFlow

TechFlow Guide: At the beginning of October, the Ethereum validator exit queue surged by about 392%, peaking at nearly 850,000 ETH waiting in line and an estimated 14.77-day wait; of these, around 523,000 ETH originated from pre-emptive exits by MetaMask Staking following an infrastructure breach, with a strong connection to Lido operations. For ETH and LSD holders, this is a hard signal that short-term selling pressure has been stretched out and single-point infrastructure decisions can influence a much larger staking pool.

A security scare at MetaMask Staking, combined with some apparent profit-taking, pushed the Ethereum validator exit queue to its highest level this year.

According to data circulating on X, since the beginning of October, the amount of unstaked Ethereum has jumped 392%. By October 2, about 850,000 ETH were queued for withdrawal by validators leaving the network.

This is the longest exit queue seen on Ethereum this year. It occurred in the same week that MetaMask Staking notified users some of its infrastructure had been breached.

What’s driving the exit queue up

By October 2, the estimated exit wait time had reached about 14.77 days. In late September, the exit volume was still at a relatively low to mid-range of around 100,000 ETH.

The queue peaked at about 850,000 to 850,736 ETH. Across the network, roughly 43.6 million ETH are staked with about 878,000 active validators. Therefore, the exiting amount was close to 2% of the total staked ETH supply.

The MetaMask Staking incident

On September 30, MetaMask Staking disclosed that part of its infrastructure was breached. About 0.36 ETH, spanning 18 blocks' worth of rewards, was temporarily redirected. MetaMask stated that user wallets and sensitive data were not affected.

MetaMask subsequently initiated the exit of nearly 17,000 validators holding a total of about 523,000 ETH, a significant portion of which was tied to Lido operations. This withdrawal was classified as a precaution and was expected to be completed before October 7.

Of the roughly 850,000 ETH queued to exit, about 523,000 came solely from MetaMask validators.

It’s not all about risk aversion

Litecoin mining pool founder Jiang Zhuoer noted that the surge in the queue suggests some holders are locking in profits at current prices.

Price barely moved

From September 30 to October 2, ETH traded in a narrow range between $2,686 and $2,725. With an exit wait time nearing 14.77 days, any selling pressure will be distributed over time rather than hitting the market all at once.

What does this mean for stakers and the market

MetaMask's withdrawal is expected to be completed before October 7. Once cleared, unless new withdrawals take their place, the queue should shrink noticeably.

Since a significant proportion of the staked ETH being withdrawn is tied to Lido operations, this event highlights how the decisions of a single infrastructure partner can affect a much larger ETH staking pool.

There are still about 43.6 million ETH staked across around 878,000 validators. Even at peak, the exit queue was just a small part of this total.