Ethereum’s validator exit queue has reached near-zero levels for the first time since July, indicating a reduction in selling pressure according to analysts.
Data from Beaconcha.in reveals that the current exit queue stands at just 32 Ether (ETH), with a wait time of about one minute. This marks a dramatic drop of 99.9% compared to its peak of 2.67 million ETH in mid-September.
Simultaneously, the entry queue for staking has surged to its highest level since mid-November, reaching 1.3 million ETH, showcasing renewed interest in Ether staking.
The exit queue is referred to as ‘basically empty’ by Rostyk, the CTO of Asymetrix and founder of ETHKyiv. He emphasized that no validators seem to want to sell their staked ETH.
Tevis, the founder of the AlphaLedger trading app, noted, “ETH exchange reserves are at ten-year lows. Selling pressure is drying up, and the validator entry queue is markedly surpassing the exit queues, driven by entities like BitMine and ETFs seeking yield.”
Unstaking Ether is viewed as a potential indicator of validators aiming to liquidate their assets for capital gains, shift yield strategies, or adjust their portfolios, while staking signifies confidence in long-term retention of the asset.
No Backlogs for Validators Exiting
The validator exit queue crucially regulates how validators can cease participation in consensus and validation processes. This system is designed to limit any panic that could arise from mass departures that might destabilize the network.
A top-line exit queue suggests no need for validators to delay full exits, reflecting reduced overall unstaking pressure and allowing new requests to be processed immediately.
BitMine, the largest Ether asset treasury, is actively staking ETH and had initiated this move on December 26. Since then, they added an additional 82,560 Ether to the entry queue on January 3, totalling 659,219 ETH valued at approximately $2.1 billion. Currently, BitMine holds over 4.1 million ETH, around 3.4% of the total supply, equivalent to roughly $13 billion.
