Bitwise analysts: The increasing amount of ETH to be unstaked may bring greater market selling pressure

PANews reported on August 17 that according to Decrypt, the validator exit queue of the Ethereum blockchain reached 855,158 ETH on Friday, a record high. Juan Leon, senior investment strategist at Bitwise, said that the increasing number of ETH to be unstaked may be the reason for the recent pullback of the asset. The unstaked Ethereum queue usually has a negative impact on the price of ETH, and may also bring greater market selling pressure in the future, because staked tokens like stETH can be traded at a discount, and the discount will reduce the value of the collateral, thereby triggering risk reduction, hedging and even liquidation, which will eventually lead to ETH spot selling. The leveraged "stETH cycle" transactions conducted through the DeFi protocol liquidity pool will no longer be profitable, and traders will also form synchronous selling pressure by closing positions and selling ETH to repay loans.