Validator withdrawal from SwissBorg incident - The wait to exit Ethereum could take up to 42 days.

The queue to exit Ethereum's validation process is expected to surge in the coming days, but crypto market participants need not worry too much, according to Anthony Sassano – an education expert on Ethereum.

"This amount of ETH is likely to be restaked with new validator keys, meaning it will not be sold off," Sassano shared in a post on X on Tuesday, citing Kiln Finance's announcement following the hack targeting SwissBorg – a Switzerland-based cryptocurrency asset management platform.

A large volume of Ether being withdrawn from staking is sometimes seen as a negative signal, as traders may worry that this indicates impending selling pressure. According to data from ValidatorQueue, the current exit queue for ETH stands at 1,628,074. A total of approximately 35.5 million ETH is currently staked, which is about 29.36% of the total supply across the network.

Kiln begins an orderly "withdrawal" from the Ethereum validator

"After our announcement yesterday regarding the incident related to Solana and SwissBorg, Kiln is implementing additional precautionary measures to protect customer assets across all networks," Kiln Finance stated in a post on X on Tuesday.

Previously, SwissBorg revealed that hackers had exploited a vulnerability in the API of their staking partner Kiln, withdrawing approximately 193,000 Solana tokens (SOL) worth about 221.80 USD/SOL from the Earn program.

"As part of the response measures, today Kiln has begun the process of an orderly exit from its entire Ethereum validator set. This exit process is being carried out as a precautionary measure to ensure the integrity of the staked assets," Kiln Finance explained.

The current exit queue chart for Ethereum is at approximately 1.63 million ETH | Source: ValidatorQueue## The exit process can take up to 42 days

Kiln Finance stated that the exit process is expected to last from 10 to 42 days, depending on each validator. At the time of writing, the price of Ether is trading at 4,325 USD, down slightly by 0.7% in the last 24 hours.

In recent months, Ethereum has witnessed a strong increase in both the waiting list for participation and the waiting list for exiting the validation process.

On August 28, Ethereum experienced the largest validator exit in cryptocurrency history, with over 1 million Ether tokens waiting to be withdrawn from staking on Ethereum's PoS network.

Meanwhile, on September 3rd, the amount of Ether in the staking queue reached its highest level since 2023, as institutional traders and cryptocurrency fund managers ramped up staking to capitalize on rewards from their held assets.

Justin