Why is Ethereum’s validator entry queue congested?

The entry queue to become an Ethereum validator now stands at 3,114,842 ETH with a wait time of 54 days and 2 hours, according to data from Validator Queue, creating the longest entry queue in over a year as institutional investors pour capital into the world’s second-largest cryptocurrency network.

The last time that exit queues dominated was in December 2025, after reaching a peak in September.

976,509 active validators have staked over 36.3 million ETH, which is nearly 30% of the total supply, as of the time of writing.

Why is Ethereum’s validator entry queue congested?

The rise of the entry queue has been fueled largely by institutional participants taking major positions in Ethereum staking. 

As of January 19, 2026, Tom Lee’s BitMine, the leading Ethereum treasury firm, had staked 1,838,003 ETH, which was worth $5.9 billion at $3,211 per ETH. 

BitMine now holds over 4.2 million ETH, which is nearly 3.5% of ETH’s total circulating supply. 

Lee, who is the chairman of BitMine, stated, “BitMine has staked more ETH than other entities in the world. At scale (when Bitmine’s ETH is fully staked by MAVAN and its staking partners), the ETH staking fee is $374 million annually (using 2.81% CESR), or greater than $1 million per day.”

73.57% of Grayscale’s ETH holdings are staked as of the time of writing. The asset manager has since become the first US Ethereum exchange-traded product to distribute staking rewards to investors in January 2026, with Purpose Investments set to follow suit on January 30.

SharpLink Gaming, operating under the ticker SBET, has emerged as the first publicly listed company to use ETH as its primary treasury asset. The firm has generated over 11,600 ETH from staking activities since launching its Ethereum treasury in June 2025.

Technical upgrades reduced barriers to entry

Ethereum’s Pectra upgrade in May 2025 contributed to lowering the barriers for large-scale staking operations. The update increased the maximum validator stake from 32 ETH to 2,048 ETH and also enabled automatic compounding of rewards. This has made it easier for institutional players to manage large positions without operating thousands of separate validators. 

With 29.88% of ETH’s supply now locked in staking contracts and the current annual percentage rate at 2.83%, the network faces a tightening of liquid supply. Analysts suggest this could support price appreciation, with some forecasting moves toward $4,000 to $6,000 in 2026.

Critics claim that the concentration of staking power among institutional players threatens the very core of Ethereum, which is decentralization. 

However, people like Lee disagree with that take, as he believes that someone accounting for 10% of a system does not equate to them being in control of it. The leadership of BitMine has stated that they want to acquire more ETH and raise their percentage of holdings to 5% of token supply.

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