Ethereum Staking Entry Queue Nearly Doubles Exit Queue as Demand Rises

TLDR

Table of Contents

Over 745,000 ETH is queued for validator entry, compared to about 360,000 ETH in the exit queue.
The entry queue flip marks the first time in six months that staking demand exceeded exits.
BitMine staked more than 340,000 ETH in two days, contributing to the entry queue surge.
The validator exit queue could reach zero by early January if current trends continue.

Ethereum’s validator entry queue has moved ahead of the exit queue for the first time in six months, signaling a renewed wave of staking activity. More Ether is now waiting to join the network than leave it, reversing a trend that had persisted since mid-year. Data shows the shift gained speed over the weekend, as institutional staking and protocol changes coincided to push entry demand sharply higher.

Entry Queue Overtakes Exit Queue After Months

Ethereum’s staking system now shows a clear imbalance in favor of new validators. About 745,619 Ether is queued for entry, with an estimated wait of nearly 13 days. By comparison, roughly 360,518 Ether is lined up for exit, with an eight-day wait.

This reversal occurred on Saturday when both queues were near 460,000 Ether. Since then, the entry queue has expanded quickly. At the same time, the exit queue has continued to decline, according to Ethereum Validator Queue data.

🔹Ethereum staking activity is picking up.
The entry queue has nearly doubled the exit queue for the first time in ~6 months, with ~746K ETH waiting to be staked vs ~361K ETH queued to exit.
Historically, similar shifts have coincided with periods of stronger ETH price… pic.twitter.com/D745c59QqK
— CryptoPotato Official (@Crypto_Potato) December 29, 2025

Ethereum operates under a proof-of-stake model that requires validators to lock up Ether. Staking reduces liquid supply, while exits often indicate plans to sell or reallocate funds. A higher entry queue is commonly viewed as a sign of confidence in long-term network participation.

Exit Queue Decline and Supply Pressure Trends

Abdul, head of DeFi at layer-1 blockchain Monad, noted that the exit queue often reflects predictable Ether supply flows. In a Dec. 24 post, he stated that the exit queue had faced steady pressure since July.

“I estimate that around 5% of the Ether supply has exchanged hands since then,” Abdul said. He added that much of this Ether came from validator exits linked to service providers.

One key event was Kiln’s full validator exit in September. The staking provider announced an orderly withdrawal after an exploit affected SwissBorg. Kiln said the move was a safety measure rather than a market decision.

Abdul also said a large share of unstaked Ether has since been absorbed by a single buyer. “Roughly 70% of this unstaked ETH has been absorbed by BitMine,” he wrote. He added that the firm now controls about 3.4% of total Ether supply.

Treasury Firms Drive Large-Scale Staking Activity

Market observers have linked the growing entry queue to digital asset treasury firms. These companies accumulate Ether and often stake it rather than keep it liquid.

Blockchain analytics platform Lookonchain reported that BitMine staked 342,560 Ether over two days. The value was estimated near $1 billion at the time. Such activity can quickly expand the validator entry line.

Dylan Grabowski, host of the Smart Economy Podcast, also pointed to treasury accumulation as a driver. Large entities can submit many validators at once, which affects queue dynamics faster than retail participation.

As more Ether is locked, circulating supply tightens. This process does not remove Ether permanently, but it delays availability. The effect becomes visible through longer entry waits and shrinking exit lines.

Network Upgrades and DeFi Adjustments Add Momentum

Some analysts believe protocol changes also supported the shift. Ignas, co-founder of DeFi Creator Studio Pink Brains, suggested the Pectra upgrade improved staking mechanics.

He said the update raised maximum validator limits and simplified staking for large balances. This change allows institutions to deploy capital more efficiently without spreading funds across many validators.

Ignas also pointed to DeFi adjustments during the same period. Higher borrow rates on Aave led to forced unwinding of stETH loop strategies. As leveraged positions closed, Ether returned to staking rather than remaining in circulation.

Ethereum’s validator queues reflect these combined forces. Institutional staking, protocol upgrades, and DeFi shifts have aligned to push the entry queue ahead of exits, marking a notable change in network activity.