Ethereum recorded its largest validator exit on record this week, with more than 2.4 million Ether worth over $10 billion awaiting withdrawal from its proof-of-stake network, but institutional participants are stepping in with billions in the validator entry queue. Ethereum’s exit queue surpassed 2.4 million Ether (ETH) worth over $10 billion on Wednesday. The spike in exits extends the validator queue time to more than 41 days and 21 hours, according to blockchain data from ValidatorQueue.com. Validators are responsible for adding new blocks and verifying transactions on the Ethereum network, playing a critical role in its operation. Ether validator queue. Source: validatorqueue.com Related: Older, richer investors could power crypto adoption through 2100 $10 billion Ethereum exit queue raises sell pressure concerns The surge in pending withdrawals has sparked renewed concern over potential sell pressure for Ether holders. While this does not mean that all validators are looking to take profit, a significant amount of the $10 billion may be sold, considering that Ether’s price has risen 83% over the past year, according to Cointelegraph’s price index. ETH/USD, one-year chart. Source: Cointelegraph Adding to the concerns about selling pressure, the validator exit queue is approximately five times larger than the Ethereum entry queue, which currently holds over 490,000 Ether set to be staked, with a wait time of eight days and 12 hours. Ethereum entry queue versus exit queue. Source: validatorqueue.com While short-term selling pressure concerns persist, the $10 billion withdrawal does not threaten the Ethereum network’s stability, which still boasts over one million active validators staking 35.6 million Ether, or 29.4% of the total supply. Related: Stimulus talk meets shutdown: What tariff-funded checks could mean for crypto The development comes a day after Grayscale staked $150 million in Ether on Tuesday, following the crypto-focused asset manager’s introduction of staking for its Ether exchange-traded products, making it the first US-based crypto fund issuer to offer staking-based passive income for its funds. On Wednesday, Grayscale deposited another 272,000 Ether worth $1.21 billion into the staking queue, meaning that the company accounts for “the majority of coins currently awaiting staking activation,” according to onchain analyst EmberCN. Source: EmberCN Despite the ballooning validator exits, Ether’s momentum continues to be driven by institutional inflows via exchange-traded funds (ETFs) and corporate treasuries, Iliya Kalchev, dispatch analyst at digital asset platform Nexo, told Cointelegraph: “Institutional and corporate treasuries now hold over 10% of ETH’s total supply, while October ETF inflows have already exceeded $620 million.” “The data reflect Ethereum’s evolution into a yield-bearing, institutionally recognized asset used both for infrastructure and collateral purposes,” he added. Magazine: How Ethereum treasury companies could spark ‘DeFi Summer 2.0’