Ethereum, one of the world’s leading cryptocurrencies, is facing a major issue as more than USD 598 million worth of ETH is stuck in the network. The problem lies with the outdated credentials of a significant number of validators, who are currently holding 284,286 ETH. These outdated credentials make it impossible for them to withdraw their funds until they are updated.
According to Nansen analytics, 106,219 validators are affected by this issue, and it is creating a delay in the withdrawal process. The automatic update process requires a network scan, which slows down the process even further, adding extra wait time for those relying on non-updated nodes. Investment firm Galaxy estimates that it may take up to four days for the network to run an update on the withdrawal credentials for an entire validator set, which could lead to bearish sentiment and push Ethereum below the USD 2k mark.
Kraken, a prominent cryptocurrency exchange in the US, is among the 31,000 validators planning to exit the Ethereum space, potentially unstaking over 1.1 million ETH tokens, creating significant sell pressure. This, coupled with the USD 598 million worth of ETH stuck in the network due to credential updates, may lead to a bearish sentiment and a drop in Ethereum’s value.
Overall, Ethereum is facing a crucial time, and its future remains uncertain until the issue with the outdated credentials of validators is resolved. If the network fails to update the credentials on time, it could result in significant losses for those holding their funds in the network, as well as for the entire cryptocurrency market.
