Ethereum validator exit queue hits zero as staking demand surges
The Ethereum validator exit queue has fallen to zero while the entry queue has surged to 2.6 million ETH — the highest since July 2023 — causing entry wait times to lengthen to about 45 days. Exit requests are being processed within minutes, signaling minimal selling pressure from stakers. Staking inflows are credited with tightening ETH’s supply-demand dynamics and may support upward price momentum. Institutional demand is a major driver; BitMine Immersion Technologies (Tom Lee) has staked over 1.25 million ETH. Around 46.5% of total ETH supply (77.85 million ETH) is now in the PoS deposit contract, and roughly 36.1 million ETH (about 29% of supply) is actively staked, per Santiment and Beaconcha.in. Staking yields are near 2.8% APR. Despite these flows, ETH trades around $3,300, below its $4,946 high from August 2025.
Bullish
Zero exit queue and a rapidly expanding entry queue indicate substantially reduced selling pressure from stakers and strong new stake inflows. Large institutional stakes (e.g., BitMine staking >1.25M ETH) and nearly half of ETH supply locked in the PoS deposit contract tighten circulating supply, which historically supports price appreciation when demand remains steady or rises. Staking yields (~2.8% APR) add an income incentive for long-term holding, reducing short-term sell-side liquidity. Short-term impact: reduced volatility from exit flows and potential upward price pressure as queued entries convert to active validators (after ~45 days), which could further lift staking rates and reduce available float. Long-term impact: higher share of supply staked increases supply-side rigidity, making ETH more sensitive to demand shifts and positive macro/crypto catalysts. Risk factors: broader market declines, liquidations, or regulatory shocks could offset these bullish signals. Comparable events: previous large staking inflows around major upgrades and institutional onboarding correlated with sustained rallies in ETH price, though timing varied. Overall, data favors a bullish bias for traders, but macro risk and current price below all-time highs mean traders should manage position size and monitor liquidity indicators.