Data & Insights: Exit Queues, NFTs, and Options ATHs

Ex(c)iting Times

• The Ethereum validator exit queue reached 744K validators as of Saturday, 26 July, its highest ever point in history.
  • For context, the exit queue averaged roughly under 1,000 validators per day just two weeks ago.
• The exit queue spiking was likely caused by a mechanical liquidity shock on Aave’s borrow rates.
  • Over a week ago, roughly 167K  ETH (worth over $630 million) was withdrawn from the Aave lending pool, driving Aave’s wETH borrow APR from ~3 % to double‑digits.
  • The now high borrowing costs flipped popular stETH/LRT loop‑leverage trades from positive to negative carry, forcing vaults and whales to repay loans and look for raw ETH.
  • To get ETH, deleveragers redeemed stETH/wstETH and newer LRTs via the validator‑withdrawal path, causing the exit queue to spike.
  • As a result, stETH slipped around 0.3-0.6 % below par, causing arbitrageurs to buy the discount and join the exit queue to pocket the spread, compounding congestion.
  • More validators queuing led to longer waits, leading to bigger opportunity costs that led to even more stETH selling, causing a reflexive loop.
  • This phenomenon is expected to be temporary with the exit queue to subside as Aave rates normalise, which would cause the stETH discount to close and arbitrage redemptions to clear.
• Another reason for the spike in validator exits is Eigenlayer’s reopening of its deposit caps, prompting operators to exit native validators or Lido, with much of this ETH expected to re-enter via restaked validators.
  • This was evident by EigenLayer experiencing net inflows worth just ~$940 million on Monday, 21 July 2025.

Punk Rock

• CryptoPunks NFT saw over $24.6 million worth of trading volume last week, its highest weekly total since March 2024.
  • This also represents a 416% increase compared to the prior week.
  • Both its floor price and average sale price also experienced notable surges last week, with the floor price increasing from roughly 40 ETH to 47.5 ETH
  • In dollar terms, the average sale price of a CryptoPunk increased from $140K two weeks ago to $182K last week.
• The surge in interest and trading activity of CryptoPunks was likely caused by public company, GameSquare, issuing $5.15 M in preferred shares to purchase Punk #5577, one of only 24 “Ape Punks.”
  • GameSquare is a Nasdaq‑listed media firm and the parent company of popular gaming and entertainment organization, FaZe Clan.
  • The company valued the Punk at ~3x the then‑floor, marking the first major corporate NFT acquisition financed with equity, while also framing the Punk as a yield‑bearing balance‑sheet asset.
  • The deal likely signalled to funds, treasuries and high‑net‑worth collectors of the role blue‑chip NFTs have of being legitimate treasury assets, which likely prompted fresh bids across the entire collection.

New Shiny Thing to Buy

• The cumulative market capitalization of public companies holding cryptocurrency has surged to $165 billion, up from approximately $90 billion at the start of 2024, marking a new trend as investors seek exposure to crypto through equities.
  • This growth over the past six months reflects a broader shift in corporate treasury management strategies, with companies increasingly viewing digital assets as legitimate balance sheet holdings.
  • Many of these companies have experienced significant double-digit stock price surges following crypto treasury announcements, as markets adjust to this emerging trend.
• The mNAV (multiple of Net Asset Value) metric has become crucial for evaluating these treasury companies. It measures a multiple of the token’s NAV, calculated by dividing the enterprise value by the token's NAV.
  • While many of these treasury companies trade at a premium mNAV, it doesn't always translate to leveraged exposure, as speculative activity pushes up the price.
  • The premium reflects market sentiment around professional crypto management and institutional credibility rather than pure asset backing.
• The emergence of treasury companies has given large token holders an interesting opportunity with sophisticated exit mechanisms that bypass traditional market liquidity constraints.
  • Rather than selling directly on exchanges and potentially depressing prices, whales can transfer their holdings to treasury vehicles in exchange for equity shares.
  • These equity positions can then be sold through traditional financial markets, offering better liquidity and more stable pricing while maintaining a "diversified treasury" narrative rather than appearing as token dumps.
• This trend addresses fundamental market structure issues around token liquidity while creating new investment vehicles that bridge traditional finance and crypto markets. The sustainability of current valuations will likely depend on thoughtful execution and the performance of underlying crypto assets.

So Many Options Out There

• Aggregated open interest in Bitcoin options has surged to nearly $50 billion across major cryptocurrency exchanges, representing the notional value of all outstanding options positions on native Bitcoin contracts.
  • Deribit dominates this landscape with approximately $45 billion in open interest, cementing its position as the primary venue for sophisticated Bitcoin derivatives trading. 
  • This comes as great news for Coinbase, as they acquired the options exchange for a record-breaking $2.9 billion back in May. 
  • The remaining $5 billion is distributed across exchanges, including OKX, Binance, and Delta Exchange Global, indicating a concentrated market structure around established platforms with reliable reporting metrics.
• This figure excludes the rapidly growing Bitcoin ETF options market, where IBIT options alone account for an additional $7 billion in open interest, with the total addressable options market extending well beyond native crypto venues.
  • The bifurcation between traditional finance and crypto-native options creates parallel markets serving different investor bases, with ETF options appealing to institutional players seeking regulated exposure.
  • Combined, these markets represent over $57 billion in Bitcoin options exposure, reflecting unprecedented institutional and retail appetite for structured Bitcoin products.
• The trajectory toward higher options open interest appears sustainable as market participants increasingly demand sophisticated hedging and speculation tools.
  • Options provide crucial risk management capabilities for Bitcoin miners, institutional holders, and trading firms seeking to hedge price exposure without liquidating underlying positions.
  • Growing institutional adoption of Bitcoin as an investable asset creates natural demand for options-based hedging strategies.