Ethereum Validator Exit Queue Nears Zero as Staking Demand Rebounds

Source: DefiPlanet Original Title: Ethereum Validator Exit Queue Nears Zero as Staking Demand Rebounds Original Link:

Quick Breakdown

• Ethereum’s validator exit queue has fallen near zero, signalling reduced unstaking and selling pressure.
• Validator entry demand is rising, with 1.3 million ETH waiting to be staked.
• A major digital asset treasury is driving a significant share of new staking activity, locking up billions worth of ETH.

Ethereum’s validator exit queue has dropped close to zero for the first time since July 2025, a shift analysts say could ease selling pressure on Ether and signal renewed confidence in long-term staking.

Data from Beaconcha.in shows the current exit queue at just 32 ETH, with an estimated processing time of about one minute. This represents a 99.9% decline from its mid-September peak, when more than 2.6 million ETH was waiting to exit validation.

At the same time, validator demand is moving in the opposite direction. Ethereum’s entry queue has climbed to 1.3 million ETH, its highest level since mid-November, indicating a surge in new staking activity.

Industry observers say the imbalance between exits and entries suggests validators are choosing to lock up ETH rather than prepare it for sale.

Selling pressure fades as validators stay put

The near-empty exit queue reflects a sharp slowdown in unstaking activity, which is often interpreted as a precursor to selling. With fewer validators seeking to withdraw, ETH appears to be facing reduced short-term supply pressure.

“The exit queue is basically empty, no one wants to sell their staked ETH,”

Other analysts point to broader on-chain trends reinforcing this outlook. ETH exchange balances have fallen to decade-low levels, while validator entry requests continue to outpace exits, a pattern some attribute to institutional players and ETF-related staking strategies.

Unstaking typically allows validators to reallocate capital, pursue alternative yields, or rebalance portfolios. By contrast, staking is often seen as a long-term conviction trade, as funds are locked and exposed to both rewards and penalties.

Major digital asset treasury accelerates ETH staking strategy

One of the largest contributors to the growing entry queue is a major digital asset treasury focused on Ether.

The firm began staking ETH on December 26 and added another 82,560 ETH to the entry queue on January 3, worth roughly $260 million at current prices. It has now staked 659,219 ETH, valued at approximately $2.1 billion.

The entity currently holds more than 4.1 million ETH, representing about 3.4% of Ethereum’s total supply, with a market value near $13 billion.