On August 17, the number of validators exiting the Ethereum Blockchain queue reached 855,158 ETH on Friday, setting a new historical record. A senior investment strategist from a certain investment institution stated that the increasing amount of ETH about to be unstaked may be the reason for the recent pullback of this asset. The queue of unstaked Ethereum usually exerts a negative impact on the ETH price and may also bring significant market dumping pressure in the future.
Because staking tokens like stETH can trade at a discount, the discount can reduce the value of the collateral, leading to risk reduction, hedging, or even liquidation, ultimately resulting in ETH spot selling. The leveraged "stETH cycle" trading conducted through DeFi protocol liquidity pools will no longer be profitable, and traders create synchronized selling pressure by closing positions and selling ETH to repay loans.