Holt had avoided the ignominy of joining Eddie Charlton in becoming only the second player to be whitewashed at the Crucible having won the seventh frame of the first session and he began the morning session with a good long pot but could only make 40 as he ran out of position, allowing Walden in to make 61.
Walden eventually prevailed to win the frame 80-59 to leave him only requiring one more frame to make it into the next round and, after exchanging a couple of mini-breaks each, Walden wrapped up the final frame 66-30 to progress to the last 16
Walden, provisionally world number nine, will face either Neil Robertson or Robert Milkins in the next round.
Walden had raced into an 8-1 lead in the first session as he punished some poor shot-making by Holt.
Walden made a 140 clearance in the first half of the session and did not let up after the interval, with Holt only able to win one frame to make it 6-1 with a break of 54 - but Walden instantly responded to make it 7-1.
Holt will count himself unlucky not to have cut the arrears in the final frame of the session having made a break of 59 but he let Walden back in to record a 8-1 win in the morning session.