TechFlow, on July 29, according to The Block, the Ethereum validator exit queue reached 744,000 validators on July 26, setting a new historical record. In the previous two weeks, the daily average number of exits was only around 1,000 validators.
This surge was primarily driven by a liquidity shock on the Aave lending platform. Approximately 167,000 ETH (worth over $630 million) was withdrawn from Aave’s lending pool, causing the annual borrowing rate for wrapped ETH (wETH) to rise from about 3% to double digits. The rising rates turned previously profitable staked ETH (stETH) leveraged trading strategies into losses, forcing traders to repay loans and seek native ETH.
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