Digital Asset Treasuries like Tom Lee’s Bitmine have contributed to the increase in the entry queue, but the network’s Petcra upgrade may have also helped.
Ethereum’s staking queue has flipped the exit line for the first time in six months, with almost twice as much ETH now lined up to be staked as ETH trying to leave the network.
The entry queue for validators has roughly 745,619 Ether (ETH) with a nearly 13-day wait, while the exit line has around 360,518 ETH and an eight-day wait, according to the blockchain explorer Ethereum Validator Queue.
The flippening happened on December 27 when both queues were around 460,000, but the entry queue has gone vertical since while some argue the exit queue is trending towards zero.
Abdul, the head of DeFi at layer 1 blockchain Monad, said in an X post on Sunday that the last time the entry and exit queue flipped in June, Ether “doubled in price shortly after,” and predicted that “2026 going to be a movie.”
Ether crossed over $2,800 in June; however, by Aug.24, it had hit a new all-time high of $4,946. It’s trading hands for $3,018 as of Monday.
Ethereum is a proof-of-stake network that requires validators to stake the assets to secure the network. Unstaking is often seen as a sign validators are looking to free up Ether for sale, while staking is seen as a sign of confidence to lock it up for long-term holding.
Abdul said in an earlier Dec.24 post that the exit queue is a leading indicator of predictable supply flows entering the market via unstaking, and that it has been under sell pressure since July.
“I estimate that around 5% of the Ether supply has exchanged hands since then — this accounts for Kiln’s unstaking in September. Roughly 70% of this unstaked ETH has been absorbed by Bitmine; they now hold 3.4% of the ETH supply,” he said.
Kiln, a staking service provider, instigated an “orderly exit” of all its Ether validators in September, as a safety precaution after the exploit of digital asset investment platform SwissBorg.
“At its current rate, the validator exit queue will reach 0 on Jan 3rd — after which I expect the sell pressure on ETH to subside,” Abdul added.
Others on crypto X, including Dylan Grabowski, the host of the Smart Economy Podcast, pointed to large digital asset treasury companies like Bitmine scooping up large amounts of Ether and staking it as a possible cause for the change.
Meanwhile, the pseudonymous co-founder of DeFi Creator Studio Pink Brains, Ignas, speculated the flip was due to the Pectra upgrade improving the staking user experience, and raising the “max validator limits, making restaking easier for large balances.”
Ignas also speculated that “DeFi deleveraging when Aave borrow rates increased and stETH loopooors were forced to unwind,” could have also contributed.
