Analysis: The massive ETH queue for withdrawals may be related to the Aave's sudden drop in Ethereum supply, and if worsens, it could result in stETH becoming unpegged.

BlockBeats News, July 23, Cryptocurrency KOL darkpools posted on social media to analyze that the recent reason for 620,000 ETH queued for unstaking may be:

A whale withdrew ETH deposits from Aave (reducing ETH supply), causing the ETH utilization rate on Aave to skyrocket, leading to a significant increase in ETH borrowing interest rates;
Users using stETH for looping found it unprofitable due to high costs and began de-leveraging;
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%).

The remaining loopers face a dilemma: either accept this 30 basis point discount (which translates to a 3% loss at 10x leverage), or continue to hold positions and bear interest losses until stETH re-anchors.

Since the stETH oracle price is based on the redemption value, not the market price, borrowers are currently stuck in their positions, potentially needing to wait for about 18 days at most - which is the current queue time for ETH unstaking. If the situation continues to deteriorate, there may be liquidation triggered by accumulated interest, further suppressing stETH's anchoring and worsening the situation.