Ethereum’s participation test system faces its biggest test so far. In mid -September, approximately 2.5 million ETH, valued at approximately $ 11.25 billion, is waiting to leave the assembly, according to the Validator Queue panels.
The backlog pushed out the waiting times for more than 46 days on Monday, the longest in the history of stagnation of Ethereum, Dashboards show. The last peak, in August, put the starting tail at 18 days.
The initial spark occurred on September 9, when Kiln, a large infrastructure provider, decided to get out of all its validators as security caution. The movement, triggered by recent security incidents, including the attack of the NPM supply chain and the Swissborg violation, pushed around 1.6 million ETH to the tail at the same time. Although they are not related to the Ethereum protocol in itself, the hacks shook enough confidence for Killn to reach a pause, highlighting how events in the broader crypto ecosystem can cascade in Ethereum’s validator dynamics.
In a blog post by Figment’s supplier, senior analyst Benjamin Thalman said that the current accumulation of the output queue is not only security. After ETH has recovered more than 160% since April, some stakers are simply taking profits. Others, especially institutional players, are changing their portfolios.
At the same time, the validators that enter the Ethereum ecosystem have been constantly increasing. The May statement of the SEC clarifies that the rethinking is not a security has renewed interest in the rethinking. The anticipation of ETF ETF approvals is another driver, since the funds are prepared for regulated ways to capture the rethinking yield, Thalman said.
The Ethereum rotation limit, which is a protocol safeguard that limits how many validators can enter or leave for a certain period of time, currently has a limit of 256 ETR per time (approximately 6.4 minutes), restricting the speed with which validators can join or leave the network, and is intended to maintain the stable network.
With more than 2.5 million ETH aligned, the stakers face Wednesday 44 days before reaching the cooling step.
Thalman believes that much of the existing ETH will simply be forwarded under new validators, which means that even 75% of the current tail is deposited again, almost 2 million ETH will flood the activation tail, bringing delays for the new reference of ETH and an accumulation on both sides of the validator tail.
“The activation tail is currently 13 days, to this add the ~ 2m eth of those who currently leave (35 days) and 4.7 m of ETF (81 days), and the total is 129 days. This means that there are no other ETH holders that choose to bet and enter the tail, such as corporate comforts,” Thalman wrote in the blog.
The swelling tail underlines a paradox: Ethereum is working “as planned” indicated by Thalman, and the demand for both exit and recentrar highlights the central role of staking in the ecosystem. Therefore, the network is experiencing the growing pains of an institutionalized maturation system where the infrastructure scares, the gains cycles and the regulatory changes, all collide in real time.
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