Analysis: The massive ETH queue for unbonding may be related to the sudden drop in Ethereum supply on Aave, and if it worsens, it could lead to stETH becoming untethered.

On July 23rd, the cryptocurrency Key Opinion Leader (KOL) darkpools posted an analysis on social media, stating that the recent reason for the 620,000 ETH queued for unstaking might be as follows: A whale withdrew ETH deposits from Aave (reducing the supply of ETH), resulting in the ETH utilization rate on Aave soaring, leading to a sharp increase in the borrowing rate of ETH; Users using stETH for looping faced unprofitability due to high costs, prompting them to reduce leverage; A large amount of de-leveraged stETH entered the staking withdrawal queue; Some users chose to directly sell stETH to avoid the withdrawal queue, causing stETH to deviate by 30 basis points (0.3%). Due to the fact that the oracle price of stETH is based on the redemption value rather than the market price, lenders are currently stuck in their positions and may need to wait for up to about 18 days, which is the current ETH unstaking queue time. If the situation continues to deteriorate, stETH may face liquidation triggered by accumulated interest, further suppressing the anchoring of stETH and worsening the situation.