The Ethereum network validator exit queue has fallen back toward zero for the first time since July last year, which could reduce selling pressure, analysts say.
According to data from Beaconcha.in, the current exit queue is just 32 Ether (ETH), with a wait time of around a minute. It is down 99.9% from its peak of 2.67 million ETH in mid-September.
Meanwhile, the entry queue has hit its highest level since mid-November at 1.3 million ETH, signalling renewed interest in Ether staking.
The ETH staking exit queue is “basically empty,” said Asymetrix chief technology officer and ETHKyiv founder Rostyk. “No one wants to sell their staked ETH,” he added.
“ETH exchange reserves are at ten-year lows. Selling pressure is drying up, and now we’re seeing validator entry queue far outpace exit queues (driven by BitMine and ETFs staking their ETH for yield,” said Tevis, the founder of the AlphaLedger trading app.
Unstaking Ether is sometimes seen as a sign that validators are looking to free up the asset for sale, change yield opportunities, or rebalance portfolios, while staking is seen as a sign of confidence to lock it up for long-term holding.
The Ethereum validator exit queue is almost empty. Source: Validator QueueNo backlog of validators waiting to exit
The validator exit queue primarily controls the rate at which validators can fully exit or stop participating in network consensus and validation.
This queue rate-limits voluntary or slashed exits to prevent sudden mass departures that could disrupt network stability. Validators remain active, earning rewards but risking penalties while queued.
Related: Grayscale declares first Ethereum staking payout for US-listed ETF
It is slightly different from the withdrawal queue, which is a payout mechanism for partial withdrawals from validators automatically skimming excess rewards without exiting or stopping participation.
A zero exit queue means there is no backlog of validators waiting to initiate their full exit. It indicates reduced unstaking pressure overall and fewer mass exits, allowing any new exit requests to process immediately.
In December, observers predicted that the exit queue could fall to zero.
BitMine ramps up Ether staking
The world’s largest Ether digital asset treasury, BitMine, has been aggressively staking the asset in recent weeks.
The company first started staking ETH on Dec. 26, and added a further 82,560 Ether, worth roughly $260 million, to the entry queue on Jan. 3. According to its latest announcement, BitMine has staked a total of 659,219 ETH valued at $2.1 billion at current market prices.
The Tom Lee-chaired firm currently holds just over 4.1 million ETH, or around 3.4% of the total supply, worth roughly $13 billion.
Magazine: Kain Warwick loses $50K ETH bet, Bitmine’s ‘1000x’ share plan: Hodler’s Digest
Source: https://cointelegraph.com/news/ethereum-staking-pressure-shifts-validator-exit-queue-clears-out?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
