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Key Takeaways
Why the uproar against the ETH unstaking queue?
The waiting period jumped from 10 days to over 45 days, sparking outcry from stakers.
How did Vitalik Buterin react?
Buterin said the friction is a ‘security’ feature, not a bug. He added that the chain would be ‘less trustworthy’ if the waiting period is reduced.
The unstaking period for Ethereum [ETH] has more than doubled to over 45 days in the past few days, sparking criticism across Crypto Twitter (CT).
Some complained that the long queue made it difficult to get funds to pay bills like electricity and rent. As a result, they called for the period to be shortened, as in Solana’s [SOL] case, which takes only two days.
In response, Vitalik Buterin, fo-founder of Ethereum, said that the extended waiting period is part of the ‘security deal’, drawing parallels to a soldier quitting the army.
Source: X
He added that reducing the waiting period will make the chain ‘much less trustworthy.’
Pending unstaked value hits $11B
According to validator queue data, the amount of ETH set to be unstaked hit 2.5 million ETH, worth over $11B at current prices.
The queue jumped from 600K ETH in mid-September to over 2.5 million ETH, nearly 4x unstaking growth in two days.
Subsequently, the waiting period jumped from around 10 days to 46 days over the same period. As of press time, the unstaking period was slightly down to 43 days.
Source: Validator Queue
The dynamic waiting period can be painful for someone who needs unstake and sell ETH to cover some immediate expenses.
However, Buterin urged service providers to clearly inform their staking clients of the potential delays in advance.
That said, ETH’s overall market sentiment remained negative after the update. Additionally, speculative interest in the altcoin remained muted even after the Fed rate cut.
Source: Santiment
Overall, the muted speculative interest may be linked to the broader market attempting to digest the Fed’s rate cut and outlook.
It remains to be seen whether demand and bullish leaning will resume in the near term ahead of positive Q4 seasonals.