CoinDesk’s analysis of the data shows that an incident at MetaMask has caused a backlog for Ethereum stakers trying to leave. Roughly 166,000 ETH was queued up on Sept. 29, and by Oct. 2, the total waiting had risen to about 851,000 ETH.
The Queue’s Numbers
About 786,000 ETH, worth more than $2 billion, remained in the queue Monday, with an estimated wait of nearly 14 days. That wait comes from Ethereum’s limits on how quickly validators can join or leave the network.
Before coins reach the wallets of their owners, they pass through a distinct withdrawal procedure. The daily caps sit at roughly 57,600 ETH entering and 57,600 ETH exiting, which means significant shifts tend to accumulate as waiting lines.
What Caused the Surge
Following a security incident that affected part of its infrastructure, MetaMask started withdrawing validators as a precautionary measure. The wallet provider, which also runs staking services, announced the incident on Sept. 30. It added that its investigation found no evidence that customer wallets or funds were impacted.
A security researcher named Kaden who works on Ethereum security estimated that the precautionary exits involved roughly 17,000 validators, covering around 523,000 ETH. MetaMask has not confirmed these figures.
“No action is required from stETH holders.”
Lido’s Plan
Lido’s pooled staking service anticipates a slow return of the withdrawn ether, with the full process potentially stretching to around 45 days. During that time, affected validators will miss out on rewards while they remain out of service.
The final MetaMask validators expected to cease staking will do so by Oct. 7, at which point their coins will enter the queue for staking to resume.
Demand to Enter Is Cooling
Interest in staking has eased since then. Roughly $4 billion in value, or about 1.5 million ETH, sat waiting to enter on Monday, with an estimated wait time of roughly 25 days. That compares with about 2 million ETH and a wait of about 35 days in early September.
| Queue | Size | Wait Time |
|---|---|---|
| Exit | 786,000 ETH | Nearly 14 days |
| Entry | 1.5 million ETH | Roughly 25 days |
The Detour
The exit queue is a temporary detour for one operator’s coins. MetaMask’s withdrawal of roughly 523,000 ETH pushed the queue far above its previous high of roughly 476,000 ETH reached during a May surge.
Affected validators miss rewards while they are out of service.
Source material: “Ethereum investors are stuck in a two-week staking exit line. Here's why.,” CoinDesk.
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