Ethereum staking demand surges as validator exit queue shrinks

The Ethereum validator exit queue is now close to zero, a threshold not seen since last summer. The exit queue currently holds 32 ETH, with a waiting time of one minute, representing a 99.9% decrease from approximately 2.67 million ETH in mid-September. 

Some market observers have claimed that the decline in withdrawals could help alleviate selling pressure. 

Selling pressure on Ethereum is subsiding

Ethereum’s entry queue, on the other hand, is currently at 1.3 million ETH, reaching its highest point since mid-November with a hint of more staking activity underway. Rostyk, the CTO of Asymetrix, shared his opinions, stating: “The validator exit queue is essentially empty. No one wants to sell their staked ETH. But all analytics are quiet.”

Tevis, X’s AlphaLedger trading platform founder, also said that selling pressure is fading, with new ETH stakers – such as heavyweights BitMEX and ETFs – already outnumbering the number of exit-validated players.

Typically, an exit queue acts as a buffer, limiting the rate at which validators can fully exit, and helps ensure that Ethereum stays safe during periods of heavy withdrawals. The queue ensures a gradual exit process to maintain network stability while validators are rewarded and remain subject to penalties. In contrast, the withdrawal queue handles partial withdrawals automatically, allowing validators to collect rewards without needing to exit consensus.

When the exit queue hits zero, it signals that large-scale validator exits have subsided and unstaking pressure has eased. December saw predictions that the validator exit queue could eventually empty.

Bitmine staked over 80,000 Ether on January 3

BitMine, which is the largest holder of Ether, has been actively staking its own ETH lately. The company began staking Ether after Christmas and also added another 82,560 ETH, worth about $260 million, on January 3.

It has staked 659,219 ETH to date, worth about $2.1 billion. Now, the company has more than 4.1 million ETH, or 3.4% of the total Ether, worth nearly $13 billion at the moment. BitMine has also accumulated almost 33,000 ETH in the last week, going against a wider market slowdown heading into year-end. 

In addition to ETH, the company’s assets comprise 192 bitcoins, $915 million in cash, and a $25 million position in Eightco Holdings. BitMine anticipates Ethereum’s growth in 2026, driven by institutional adoption, tokenization efforts, and increased demand for digital authentication, according to Tom Lee, the chairman of Fundstrat Global Advisors. 

The company also seeks shareholder approval to increase its authorized shares at its January 15 annual meeting, Lee added, a move that will grant BitMine the capital to fund acquisitions and facilitate future share splits, thereby continuing to increase the ETH per share.

Meanwhile, ETFs have also jumped on the staking bandwagon. Grayscale, on Monday, confirmed that the Grayscale Ethereum Staking ETF is the first Ethereum ETF to pass staking rewards directly through to shareholders.

“Distributing staking rewards to ETHE shareholders is a landmark moment, not just for Grayscale, but for the entire Ethereum community and ETPs at large,” said Peter Mintzberg, CEO of Grayscale. 

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