Ethereum Validator Exit Queue Reaches Zero Amidst Growing Staking Demand

Ethereum Validator Exit Queue Hits Zero as Staking Demand Surges

Ethereum’s staking environment has transitioned to a notably bullish stance, with the validator exit queue falling to zero for the first time since mid-2025. This change indicates a reduction in selling pressure and an increase in confidence regarding Ether as a yield-generating asset.

Key Takeaways:

Ethereum’s validator exit queue has reached zero, driven by a significant increase in staking inflows.
The growing entry backlog and heightened institutional staking are leading to a tighter supply of ETH and decreasing sell pressure.
Experts interpret this development as a bullish structural signal, even though ETH is trading below its peak price.

According to data from the Ethereum Validator Queue, the exit queue has decreased from a peak of approximately 2.67 million ETH in September 2025 to none, while the entry queue has surged more than fivefold in the last month, reaching about 2.6 million ETH.

This situation has resulted in an estimated entry wait time of around 45 days, while those validators looking to exit experience processing times of just minutes.

Ethereum Staking Backlog Indicates Tighter Supply

Market participants believe this turnaround highlights improving supply dynamics for Ether, as an increasing number of tokens are being committed to staking contracts rather than being made available for sale.

Leon Waitmann, head of research at Onchain Foundation, stated that the growing entry backlog could drive Ethereum’s staking rate to new highs as these validators become active, describing the setup as bullish in the coming months.

Institutional demand plays a crucial role in this trend. Currently, Ethereum staking yields approximate returns of 2.8% annually, making it an appealing option for larger holders looking for income without the need to sell their positions.

A significant contributor to this trend is BitMine Immersion Technologies, led by Tom Lee, which has staked over 1.25 million ETH—more than a third of its total holdings, as indicated by public disclosures.

Further analysis from analytics firm Santiment shows that more than 46.5% of Ethereum’s total supply, equating to about 77.85 million ETH, is held within the proof-of-stake deposit contract, valued at around $256 billion at current market prices.

In addition, data from Beaconcha.in indicates that the total staked ETH is about 36.1 million, accounting for nearly 29% of the circulating supply.

Despite the significant increase in staking participation, ETH’s price remains below its all-time high of $4,946 reached in August 2025. Nonetheless, analysts suggest that the disappearance of the exit queue coupled with rising entry demand signals a structural transformation that could help support prices if this upward momentum continues.

Surge in Ethereum User Activity and New Address Growth

Recent reports indicate a marked increase in new users joining Ethereum, with onchain data revealing that retention rates among newcomers have almost doubled over the past month, according to Glassnode.

The company highlighted a sharp uptick in addresses interacting for the first time, indicating that fresh users are contributing to the network's growth instead of just existing participants. New active addresses have jumped from just over 4 million to about 8 million in just one month.

Additional metrics suggest sustained momentum. Active addresses have more than doubled year-over-year, and daily transactions recently reached a record 2.8 million, representing a 125% increase compared to last year, as reported by Etherscan.

Analysts attribute this trend to lower transaction fees, increased use of stablecoins, and Ethereum’s progress toward layer-2 execution methods while keeping settlement on the main chain.

Last week, Vitalik Buterin announced that the Ethereum network has effectively addressed the blockchain trilemma, achieving a significant milestone that many in the cryptocurrency community had long considered unachievable.