The Ethereum exit queue spike reflects Kiln Finance’s precautionary, orderly exit of validators after a SwissBorg-related Solana hack. Most unstaked ETH is expected to be restaked rather than sold, so immediate sell pressure is limited; the queue currently holds ~1.63M ETH and exits may take up to 42 days.
Kiln initiated an orderly exit of Ethereum validators to protect client assets.
Exit timing varies by validator, expected between 10 and 42 days.
ValidatorQueue shows ~1,628,074 ETH in the exit queue; ~35.5M ETH is currently staked (~29.36% of supply).
Ethereum exit queue surges after Kiln begins validator exits; learn what it means for ETH holders and staking — read now.
What is causing the Ethereum exit queue spike?
The Ethereum exit queue has grown after Kiln Finance announced an orderly exit of its validators following a vulnerability exploited in a SwissBorg-related Solana incident. The measure is precautionary and likely to lead to restaking rather than mass selling, reducing near-term sell-pressure risks.
Why did Kiln Finance begin an orderly exit of Ethereum validators?
Kiln Finance said it took action after a hacking incident affected a staking partner’s API, which led to funds being drained from a Solana-based earning program. The orderly exit aims to safeguard client assets across networks while the firm investigates and mitigates risk.
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Ethereum educator Anthony Sassano commented that much of the unstaked ETH “will presumably be restaked using new validator keys, aka it’s not going to be sold.” This view reduces immediate market concern.
Ethereum educator Anthony Sassano says the significant amount of Ethereum “will presumably” be restaked and not sold off.
The Ethereum validator exit queue may spike in the coming days, but crypto market participants have limited cause for alarm, says Ethereum educator Anthony Sassano.
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“This ETH will presumably be restaked using new validator keys, aka it’s not going to be sold,” Sassano said in an X post on Tuesday, citing Kiln Finance’s announcement following a hack of a Switzerland-based crypto wealth management platform, SwissBorg.
A large volume of Ether (ETH) being unstaked is sometimes considered a bearish indicator, as traders may fear it signals upcoming selling pressure. The ETH exit queue is sitting at 1,628,074, according to ValidatorQueue data. Approximately 35.5 million ETH is staked, roughly 29.36% of the total supply.
How long will the exit process take?
Kiln Finance explained the exit process is expected to take between 10 and 42 days depending on each validator’s position in the queue. This delay smooths withdrawals and reduces the chance of sudden sell-offs.
Ether was trading around $4,306 at the time of publication, according to CoinMarketCap (reported as plain text).
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How should investors interpret the queue and staking data?
Short-term queue growth can look alarming, but context matters. Roughly 35.5M ETH remains staked, representing about 29.36% of supply. Historical surges in entry and exit queues have occurred without proportional price collapses.
Institutional staking activity, treasury decisions, and protocol-level lockups also influence how much ETH actually reaches secondary markets.
Kiln begins “orderly exit” of Ethereum validators
“Following our announcement yesterday regarding the Solana incident involving SwissBorg, Kiln is taking additional precautionary measures to safeguard client assets across all the networks,” Kiln Finance said in an X post.
SwissBorg previously disclosed that hackers exploited a vulnerability in the API of its staking partner Kiln, draining about 193,000 Solana (SOL) tokens from its Earn program. Kiln described the Ethereum validator exit as a precaution designed to ensure the integrity of staked assets.
The Ethereum exit queue currently has approximately 1.63 million ETH. Source: ValidatorQueue
Frequently Asked Questions
Will the Ethereum exit queue cause a market crash?
Not necessarily. While a large exit queue can indicate potential sell pressure, statements from validators and educators suggest much of the ETH will be restaked, and the staggered exit window (10–42 days) reduces the chance of a sudden market shock.
How many ETH are in the exit queue and how much is staked?
ValidatorQueue reports about 1,628,074 ETH in the exit queue. Approximately 35.5 million ETH is staked, which is roughly 29.36% of the circulating supply.
What should validators and staking services do now?
Validators should rotate keys, confirm custody controls, and follow provider advisories. Staking services should audit API security and communicate transparently with clients, as Kiln Finance has done.
Key Takeaways
- Precautionary exit: Kiln Finance initiated an orderly exit to protect client assets after a linked Solana hack.
- Restaking likely: Industry voices, including Anthony Sassano, expect much of the unstaked ETH to be restaked rather than sold.
- Exit timing: Exits are staggered over 10–42 days, which mitigates immediate sell-pressure risks.
Conclusion
The recent spike in the Ethereum exit queue stems from Kiln Finance’s precautionary validator exits after a SwissBorg-related incident. Data shows ~1.63M ETH queued and ~35.5M ETH staked. Market participants should monitor on-chain metrics and provider updates; most signs point to restaking, not a rapid sell-off.