Ethereum News: ETH Staking Entry Queue Doubles Exit Queue

Key Insights:

• The queue for interested validators on Ethereum’s proof of stake network has exceeded and doubled that of exits in the latest Ethereum news.
• The last time entrants exceeded the exit queue was six months ago and it led to a 2X in ETH price.
• Staking reflects confidence, as participants lock up their assets for the long term.

For the first time in six months, the queue for interested validators on Ethereum’s proof of stake network has exceeded and doubled that of exits.

All thanks to Digital asset treasury firms which continue to play a significant role in expanding their staked ETH holdings. BitMine Immersions was among the top institutions, which recently increased its holdings to $2 billion within a span of the last two days.

Moreover, the Petcra upgrade must have encouraged more validators to join the network after boosting confidence across both retail and institutional holders.

Ethereum News: ETH Staking Entrants Queue Is 2X Bigger Than the Exits Queue

Ethereum’s staking queue for new entrants exceeded the queue for exitting holders for the first time in six month. The interested stakers are now two times bigger than those exiting with latest data suggesting the latter has been steadily decreasing.

The entry queue for validators holds about 745,619 ETH, with a wait time of nearly 13 days according to data from Ethereum Validator Queue.

The number exceeded exits on Saturday, when both queues were near 460,000 ETH. Since then, the entry line has soared sharply.

Layer-1 blockchain Monad’s head of Decentralized Finance Abdul noted the massive significance of the staking queue in a Sunday tweet. He said the last time the entry and exit queues flipped was in June, and Ether doubled soon after.

When validators unstake their Ether on the Ethereum proof of stake system, it often signals a desire to free up funds for sale. In contrast, staking reflects confidence, as participants lock up their assets for the long term.

Analysts say the recent ETH staking activity provides a clear view of market sentiment, suggesting whether  investors are preparing to sell or backing the network for future growth.

Monad Official Says Exit Queue Could Hit Zero

Abdul explained in a last week post that the exit queue serves as a key indicator of predictable Ether supply entering the market through unstaking. He noted that the queue has faced consistent sell pressure since July.

He estimated that around 5% of the total Ether supply has changed hands since then. This includes Kiln’s unstaking in September. About 70% of that unstaked ETH was absorbed by BitMine, giving the company control of roughly 3.4% of the total supply.

ETH staking service provider Kiln  initiated an orderly exit of all its Ethereum validators in September. The move was a safety measure following an exploit on digital asset investment platform SwissBorg.

Abdul added that if the current trend continues, the validator exit queue could reach zero by January 3. He expects pressure on Ether to ease once that happens.

Other analysts on X, including Dylan Grabowski, host of the Smart Economy Podcast, highlighted the role of large digital asset treasury companies. Firms like BitMine have been acquiring significant amounts of Ether and staking it, which may be driving the shift in the network’s staking dynamics.

TheCoinRepublic reported on Sunday that BitMine had staked 342,560 Ether over a span of two days, a sum valued at roughly $1 billion.

Ignas, the co-founder of DeFi Creator Studio Pink Brains, said the change in the staking queue could also be due to the Ethereum Pectra upgrade. He explained that the upgrade made staking easier and allowed bigger amounts of Ether to be staked at once.

He also pointed out that other market factors might have played a part. Higher borrowing rates on Aave forced some DeFi positions to unwind, which may have affected how people were staking their Ether.