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MetaMask validator exits raise concerns about Ethereum staking backlog

Lido said affected ETH would return gradually, but Bitquery estimated a diverted $923 in tips across 18 blocks and an exit cohort worth about $3.59 billion in an Oct. 7 snapshot.

Reported · Written up by our desk · Ethereum

CryptoSlate reports that MetaMask’s precautionary validator exits are creating a stress test for Ethereum staking capacity, shifting rewards into a growing exit and re-entry backlog.

According to CryptoSlate, Lido expects affected ETH to return to staking gradually, and its entry backlog was valued at about $3.59 billion in an Oct. 7 snapshot. The full exit, withdrawal, and re-entry cycle is estimated by Lido to take up to about 45 days, with a deadline covering exits while full withdrawals and re-entry take longer.

CryptoSlate also cites Bitquery measurements of 0.36 ETH in diverted block tips across 18 blocks on Sept. 30, which it calculated as about $923 at the ETH price used in the analysis. Bitquery’s Oct. 1 snapshot identified 16,965 MetaMask-operated validators holding 565,056 ETH that had either exited or joined the exit queue, though MetaMask has not confirmed the total.

The report says MetaMask told users in an Oct. 1 update that its investigation found no indication wallets or customer funds were affected, describing the exits as precautionary. CryptoSlate adds that the larger economic exposure comes from withdrawing and restaking balances tied to those precautionary exits.

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