The Ethereum network validator exit queue has decreased to nearly zero for the first time since July of last year, potentially easing selling pressure, analysts indicate.
As per data from Beaconcha.in, the current exit queue stands at only 32 Ether (ETH), with an approximate wait time of one minute. This represents a 99.9% decline from its peak of 2.67 million ETH in mid-September.
Additionally, the entry queue has reached its highest level since mid-November, totaling 1.3 million ETH, indicating a resurgence of interest in Ether staking.
“The ETH staking exit queue is essentially empty,” noted Asymetrix chief technology officer and ETHKyiv founder Rostyk. “No one is inclined to sell their staked ETH,” he remarked.
“ETH exchange reserves are at ten-year lows. Selling pressure is diminishing, and we’re observing the validator entry queue significantly exceeding exit queues (driven by BitMine and ETFs staking their ETH for yield),” commented Tevis, founder of the AlphaLedger trading app.
Unstaking Ether is often perceived as validators seeking to liquidate their assets, explore new yield opportunities, or adjust their portfolios, while staking reflects confidence in holding it for the long term.
No backlog of validators waiting to exit
The validator exit queue primarily regulates the rate at which validators can completely exit or cease participation in network consensus and validation.
This queue limits voluntary or slashed exits to avert abrupt mass departures that could destabilize the network. Validators continue to operate, earning rewards but facing penalties while queued.
Related: Grayscale announces first Ethereum staking payout for US-listed ETF
This varies slightly from the withdrawal queue, which functions as a payout mechanism for partial withdrawals from validators skimming excess rewards without exiting or ceasing participation.
A zero exit queue signifies no backlog of validators awaiting full exit, reflecting a decrease in unstaking pressure overall and fewer mass exits, thereby enabling any new exit requests to be processed immediately.
In December, analysts projected that the exit queue could potentially drop to zero.
BitMine ramps up Ether staking
BitMine, the world’s largest Ether digital asset treasury, has been actively staking the asset over the past few weeks.
The firm commenced staking ETH on December 26 and added an additional 82,560 Ether, approximately valued at $260 million, to the entry queue on January 3. According to their latest announcement, BitMine has staked a total of 659,219 ETH, worth $2.1 billion at current market rates.
The Tom Lee-chaired company currently possesses just over 4.1 million ETH, which constitutes about 3.4% of the total supply, valued at roughly $13 billion.
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