Ethereum Validator Exit Queue Reaches Zero Amid Rising Staking Interest

The staking environment for Ethereum has turned distinctly optimistic, with the validator exit queue dropping to zero for the first time since mid-2025, indicating a decrease in sell-side pressure and an increase in confidence in Ether as a yield-generating asset.

Key Takeaways:

• The Ethereum validator exit queue has reached zero as staking inflows rise to levels not seen in years.
• Growing entry backlogs and institutional staking are constraining ETH supply and lessening sell pressure.
• Experts interpret this change as a bullish structural indicator, even though ETH is trading below its all-time high.

Data from the Ethereum Validator Queue reveals that the exit queue has decreased from a peak of about 2.67 million ETH in September 2025 to none, while the entry queue has increased more than fivefold in the past month to approximately 2.6 million ETH.

This disparity has raised estimated wait times for entry to about 45 days, while validators looking to exit are processed in a matter of minutes.

Ethereum Staking Backlog Indicates Tighter Supply

Market observers suggest that this reversal indicates a strengthening of supply dynamics for Ether, as a greater number of tokens are being committed to staking contracts instead of being made available for sale.

Leon Waitmann, research head at Onchain Foundation, stated that the increasing entry backlog could elevate Ethereum’s staking rate to new highs once those validators are activated, labeling the situation as bullish for the upcoming months.

Institutional interest has played a significant role. Currently, Ethereum staking offers yields of approximately 2.8% annually, an increasingly appealing return for large holders seeking income without selling their positions.

One of the largest contributors is BitMine Immersion Technologies, chaired by Tom Lee, which has staked over 1.25 million ETH, accounting for more than a third of its total holdings, as per public disclosures.

Wider onchain data supports this trend. Analytics firm Santiment indicates that more than 46.5% of Ethereum’s total supply, around 77.85 million ETH, is now stored in the proof-of-stake deposit contract, valued at about $256 billion at current prices.

Additionally, data from Beaconcha.in shows total staked ETH at approximately 36.1 million, which represents nearly 29% of the circulating supply.

No Ethereum is awaiting unstaking!
Exit queue: 0 ETH
This occurrence hasn’t been seen since July 2025.
The last instance preceded a significant ETH price surge.
Concurrently, demand for staking is increasing.
Entry queue: 1,811,273 ETH awaiting staking
What does it… pic.twitter.com/gipHBhpQYH

— Leon Waidmann (@LeonWaidmann) January 12, 2026

Despite the rise in staking involvement, ETH’s price continues to be below its all-time high of $4,946 from August 2025.

Nonetheless, analysts assert that the dissolution of the exit queue and increasing entry demand highlight a structural change that could bolster prices if the momentum persists.

Surge in Ethereum User Activity and Retention as New Addresses Double

As reported, Ethereum is experiencing a significant influx of new users, with onchain data indicating that activity retention among recent entrants has almost doubled in the last month, according to Glassnode.

The firm noted a sharp increase in first-time interacting addresses suggests that new users are propelling network growth, rather than temporary spikes from existing participants, with new active addresses rising from just over 4 million to around 8 million in a single month.

Additional metrics indicate sustained momentum. Active addresses have more than doubled year over year, and daily transactions recently reached a record 2.8 million, an increase of approximately 125% from last year, according to data from Etherscan.

Analysts attribute this trend to reduced fees and increased stablecoin utilization, alongside Ethereum’s transition to layer-2 execution while maintaining settlement on the main chain.

Last week, Buterin mentioned that the Ethereum network has resolved the blockchain trilemma, achieving a milestone that many in the crypto space have long considered unattainable.

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