- ETH staking inflows now outpace exits, signaling tightening supply conditions
- Validator exit queue shrinks as institutional staking demand accelerates
- Treasury firms and network upgrades drive renewed long term ETH lockups
Ethereum’s staking activity has shifted as validator demand overtakes withdrawals after months of steady exits, pushing more Ether into long term lockups. Data from the Ethereum Validator Queue shows about 745,619 ETH waiting to enter staking, translating into a delay of nearly 13 days.
By comparison, the exit queue contains roughly 360,518 ETH with an estimated eight day wait, leaving inflows almost twice the size of outflows. Over the weekend, both queues briefly converged near 460,000 ETH before sharply diverging, with entry demand accelerating as exit pressure eased.
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Staking Demand Rises as Exit Pressure Weakens
Abdul, head of DeFi at layer 1 blockchain Monad, highlighted that a similar queue reversal earlier this year came before a strong Ether rally. During that period, ETH traded above $2,800 before later climbing to $4,946, while it now changes hands near $3,018.
Ethereum’s proof of stake model requires validators to lock ETH to secure the network, making rising staking queues a signal of long term conviction. At the same time, falling exits suggest fewer validators seek near term liquidity, a trend closely watched by market participants.
Exit Queue Signals Slowing ETH Supply to Markets
Abdul noted that the exit queue often reflects predictable ETH supply entering markets through unstaking, and it has faced steady pressure since July. He estimated that close to 5% of total ETH supply exchanged hands during that stretch, driven in part by validator withdrawals.
One notable contributor was Kiln, which carried out an orderly validator exit following a security incident tied to SwissBorg. Despite that movement, much of the unstaked ETH did not reach open markets, limiting broader selling pressure.
Treasury Firms and Network Upgrades Fuel New Inflows
Abdul estimated that roughly 70% of unstaked ETH was absorbed by BitMine, giving the firm control of about 3.4% of total supply. He added that if current trends hold, the exit queue could reach zero soon, easing selling pressure further.
Blockchain analytics firm Lookonchain also flagged strong institutional activity, reporting that BitMine staked 342,560 ETH worth nearly $1 billion.
Meanwhile, Ignas of Pink Brains pointed to protocol developments, saying the Pectra upgrade improves staking efficiency for large holders. He also linked the shift to DeFi deleveraging after higher Aave borrow rates, reinforcing signs of tightening ETH supply.
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