Validator dynamics on ETH are shifting again, with the Ethereum staking queue now outpacing exits and signaling renewed confidence among large holders.
Ethereum staking queue overtakes exits
The Ethereum staking queue has flipped the exit line for the first time in six months, with almost twice as much ETH waiting to be staked as Ether queued to leave the network.
According to the Ethereum Validator Queue tracker, the entry line for validators now holds roughly 745,619 Ether (ETH), implying a wait time of nearly 13 days. However, the exit queue sits at around 360,518 ETH, with departing validators facing an approximate eight-day delay.
The turning point came on Saturday, when both the entry and exit queues were hovering near 460,000 ETH. Since then, the entry queue has moved sharply higher, while some analysts argue that the exit queue is trending toward zero, potentially easing near-term sell pressure.
Market reactions on Ethereum staking news and historical context
Abdul, head of DeFi at layer 1 blockchain Monad, highlighted the shift in an X post on Sunday. He noted that the last time the entry and exit queues flipped in June, Ether “doubled in price shortly after,” adding that “2026 going to be a movie.”
Back then, Ether climbed above $2,800 in June and later surged to a new all-time high of $4,946 by Aug.24. That said, the price has since cooled, with ETH trading around $3,018 as of Monday, showing that while staking patterns can align with bullish phases, they do not guarantee sustained rallies.
Staking flows, sell pressure and validator behavior
Ethereum operates as a proof-of-stake network, requiring validators to lock up assets to help secure the chain. Moreover, unstaking is often interpreted as validators preparing to free up Ether for potential sale, while fresh staking suggests growing confidence and a willingness to hold long term.
In a Dec. 24 post, Abdul argued that the eth exit queue acts as a leading indicator of predictable supply flows entering the market via unstaking. He said the network had been under consistent sell pressure since July, as accumulated withdrawals gradually made their way to exchanges and over-the-counter desks.
Abdul estimated that around 5% of the total Ether supply has changed hands since July, including Kiln’s large-scale unstaking in September. Roughly 70% of that unstaked ETH has reportedly been absorbed by BitMine, which he said now controls about 3.4% of the entire ETH supply. However, that accumulation has coincided with the recent easing of exit pressure.
Kiln’s orderly exit and expected normalization
Kiln, a staking service provider, initiated what it called an “orderly exit” of all its Ether validators in September. The move came as a precaution after the exploit of digital asset investment platform SwissBorg, highlighting ongoing operational risk in third-party staking.
Abdul added that, at the current pace, the validator exit queue is on track to hit 0 on Jan 3rd. Moreover, he expects sell pressure on ETH to subside once that backlog is cleared, potentially allowing spot demand and new staking flows to play a larger role in price discovery.
BitMine’s aggressive accumulation and staking
Other voices on crypto X, including Dylan Grabowski, host of the Smart Economy Podcast, have pointed to large digital asset treasury players such as BitMine as a driving force behind the latest ETH staking status shift. These entities have been scooping up substantial amounts of Ether and sending it directly into validator contracts.
On Sunday, blockchain analytics platform Lookonchain flagged fresh Bitmine staking activity. Over the previous two days alone, BitMine reportedly staked 342,560 Ether, worth roughly $1 billion. That said, this aggressive buildup of validator positions may be amplifying the divergence between the entry and exit queues.
Pectra upgrade and DeFi deleveraging as catalysts
Meanwhile, Ignas, the pseudonymous co-founder of DeFi Creator Studio Pink Brains, suggested that the network’s Pectra upgrade is another key factor behind the flip. In his view, the upgrade has improved the staking user experience and increased the maximum validator limits, making it easier for large balances to be restaked.
Ignas also floated another explanation tied to DeFi deleveraging impacts. When Aave borrowing rates rose, many leveraged stETH users, or “loopooors,” were reportedly forced to unwind positions. However, those unwinds may have ultimately opened the door for new, less leveraged participants to step into staking.
What the latest Ethereum staking signals
For now, the Ethereum validator queue suggests demand to participate in network security is outstripping the desire to exit. Moreover, if the exit line does fall to zero around Jan 3rd as projected, short-term sell pressure tied to unstaking could ease, leaving spot flows and new institutional allocations as the main drivers.
While past flippenings have aligned with stronger price action, the current backdrop also includes the impact of large treasuries like BitMine, the aftermath of protocol exploits, and ongoing changes from the Pectra upgrade. Taken together, these factors make the latest queue inversion an important on-chain signal for ETH traders and long-term holders alike.
Source: https://en.cryptonomist.ch/2025/12/29/ethereum-staking-queue-flip/
