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Ethereum is confronting simultaneous technical and market stresses after on-chain data showed its validator exit queue has swollen to roughly 644,000 ETH, the largest backlog in 18 months. The departures could release more coins onto the market once the withdrawals are processed, adding potential selling pressure. At the same time, rising Wrapped Ether borrow rates on the Aave lending platform have rendered the popular stETH leverage loop unprofitable. Analytics firm Glassnode said large holders are unwinding those positions, unsettling the ETH/stETH liquidity pool and temporarily pushing stETH below its intended one-to-one peg with Ether. The dual pressures have coincided with a 7% slide in Ether from its 2025 high. Despite the pullback, spot-market turnover in ETH reached $25.7 billion in the past day, edging past Bitcoin’s $24.4 billion, according to CryptoQuant, as traders rotate into Ether and other alternative tokens.
Rising WETH borrow rates on Aave made the stETH leverage loop unprofitable, triggering unwinds that imbalanced the ETH/stETH pool and depegged stETH, contributing to ETH sell pressure. Additionally, a growing validator exit queue adds friction to arbitrage, slowing peg recovery. https://t.co/TaZddEkBwe
Spiking WETH borrow rates on Aave have made the stETH leverage loop unprofitable, triggering unwinds that imbalanced the ETH/stETH pool and depegged stETH, leading to heightened ETH sell-side pressure. Additionally, a growing validator exit queue adds delay and friction to https://t.co/BQMa6R3d6i
Spiking WETH borrow rates on Aave have rendered the stETH leverage loop unprofitable, triggering unwinds that have imbalanced the ETH/stETH pool and depegged stETH, resulting in heightened ETH sell-side pressure. Additionally, a growing validator exit queue adds delay and https://t.co/LbxSD00vHB
