ETH Validator Entry Queue Nearly Doubles Exit Queue as Staking Demand Surges

• ETH staking entry queue now almost twice the exit queue
• More than 745,000 ETH waiting to be staked
• Exit queue shrinks as unstaking pressure fades
• Treasury firms like BitMine absorb large ETH supply
• Network upgrades and staking UX improvements cited
• Analysts see supply pressure easing into early 2026

Ethereum’s staking dynamics have shifted sharply, with the validator entry queue overtaking the exit queue for the first time in six months, signaling renewed confidence in locking up Ether rather than withdrawing it for sale.

Data from the Ethereum Validator Queue shows roughly 745,619 ETH waiting to enter staking, with an estimated 13-day delay, compared with about 360,518 ETH in the exit queue facing an eight-day wait. The reversal occurred over the weekend, when both queues briefly converged near 460,000 ETH before entry demand accelerated rapidly.

Market participants view staking activity as a proxy for long-term conviction. Validators committing ETH reduce liquid supply, while exits often indicate preparation to sell. The sudden imbalance suggests that sell-side pressure may be easing after months of sustained outflows.

Abdul, head of DeFi at layer-1 blockchain Monad, noted that a similar queue flip in June was followed by a sharp rally in Ether’s price. While past performance is no guarantee, he described the current setup as structurally supportive, adding that the exit queue has been trending steadily lower since mid-year.

Exit Queue Shrinks as Supply Pressure Eases

According to Abdul, the validator exit queue has acted as a reliable indicator of predictable ETH supply entering the market. He estimates that around 5% of total ETH supply has changed hands since July, partly driven by the unwinding of large staking positions.

One major contributor was staking provider Kiln, which initiated an orderly exit of its validators in September following the SwissBorg exploit. Much of the unstaked Ether, however, appears to have been absorbed rather than sold into the market.

Abdul estimates that roughly 70% of recently unstaked ETH has been accumulated by BitMine, a digital asset treasury company now holding about 3.4% of total ETH supply. At the current pace, he expects the exit queue to hit zero in early January, potentially removing a key source of near-term sell pressure.

Treasury Accumulation and Network Upgrades Fuel Staking Demand

Other analysts point to institutional-style treasury accumulation as a major driver behind the surge in the entry queue. Blockchain data shows BitMine staking more than 340,000 ETH, worth close to $1 billion, over just two days.

At the same time, Ethereum’s recent Pectra upgrade may be improving the staking experience. Developers and DeFi builders have highlighted changes that raise validator limits and simplify restaking for large balances, making it easier for whales and treasury managers to deploy capital efficiently.

Additional factors may include DeFi deleveraging, as higher borrowing rates forced some leveraged staking strategies to unwind, freeing ETH that is now being restaked under more conservative assumptions.

Together, these dynamics point to a market increasingly favoring long-term positioning over short-term liquidity, setting the stage for tighter ETH supply conditions heading into 2026.