Beyond price action, Ethereum’s validator exit queue has returned to normal after four months of congestion that began in September. The backlog formed after Kiln removed its entire validator fleet following a hack that exploited a vulnerability in its staking infrastructure. At its peak, the queue delayed staking withdrawals for several weeks, creating operational challenges for staking platforms.
Those delays affected protocols that stake Ether for users in exchange for fees, as prolonged exit times increased uncertainty around redemptions. Kirill Kutakov, co-founder of Stakewise, told DL News that liquid staking tokens now face a lower risk of trading at discounts. Markets price duration risk when exit queues lengthen, since buyers must wait longer to redeem tokens for the Ether they represent.
With the queue cleared, redemption timelines have shortened, reducing duration risk across staking products and restoring normal conditions. This normalization coincides with Ethereum trading above key structural supports, aligning network stability with the orderly price behavior shown on the chart.
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