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Ethereum faces a validator bottleneck with about 2.5 million ETH waiting to exit, revealing the constraints of its proof-of-stake churn limits. The protocol meters validator withdrawals to preserve network stability, creating a queue that lengthens when many operators seek to unstake at once. Extended exit times can delay capital reallocation between staking providers, liquidity staking derivatives, and restaking strategies, and may influence effective yields as rewards accrue during the wait. For operators, operational planning and risk management become key while managing slashing, performance, and redeployment. For markets, a sizable backlog can affect expectations for circulating supply changes and staking participation, even as protocol-level safeguards prioritize orderly transitions over speed.