ETHEREUM STAKING BOOM DRAINS VALIDATOR EXIT QUEUE
Ethereum’s staking environment has turned strongly positive. For the first time since mid-2025, the validator exit queue has dropped to zero, suggesting reduced selling pressure and rising confidence in Ether as an income-generating asset.
According to data from the Ethereum Validator Queue, the exit queue has declined from a peak of around 2.67 million ETH in September 2025 to none at all. At the same time, interest in staking has surged, with the entry queue growing more than fivefold in the past month to approximately 2.6 million ETH.
This growing imbalance has extended estimated entry wait times to about 45 days, while validators looking to exit the network are now being processed within minutes.
Ethereum Staking Backlog Highlights Tighter ETH Supply
Market participants say the recent turnaround in Ethereum’s staking activity signals improving supply dynamics, as a growing share of ETH is being locked into staking contracts instead of flowing into the market.
Entry Queue Growth Points to Bullish Outlook
Leon Waitmann, head of research at Onchain Foundation, said the expanding validator entry queue is likely to drive Ethereum’s staking rate to new highs as validators come online. He added that the current setup appears favorable for Ethereum in the months ahead.
Institutional Participation Drives Staking Demand
Rising institutional interest has been a major factor behind the surge in staking. With Ethereum staking offering annualized yields of around 2.8%, it has become an attractive option for large holders seeking income without selling their assets. BitMine Immersion Technologies, chaired by Tom Lee, has staked more than 1.25 million ETH—over one-third of its total holdings—according to public disclosures.
On-chain Data Confirms Supply Lock-Up
Broader on-chain metrics support the trend. Santiment data shows that holders have locked more than 46.5% of Ethereum’s total supply—around 77.85 million ETH—into the proof-of-stake deposit contract, worth about $256 billion at current prices. Meanwhile, Beaconcha. In reports, total staked ETH is at around 36.1 million, accounting for nearly 29% of the circulating supply.
Price Still Below Record High
Despite the surge in staking participation, ETH continues to trade below its August 2025 all-time high of $4,946. Even so, analysts say the cleared exit queue and growing entry demand point to a structural shift that could support prices if momentum remains intact.
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Ethereum User Activity and Retention Show Strong Growth
Ethereum is experiencing a surge in user adoption, with on-chain data indicating that retention among new users has nearly doubled over the past month, according to Glassnode.
New Addresses Drive Network Expansion
Glassnode reports a sharp increase in first-time interacting addresses, suggesting that fresh users—not just existing participants—are fueling network growth. New active addresses jumped from just over 4 million to around 8 million within a single month.
Network Usage Hits New Records
Wider network metrics point to sustained momentum. The number of active addresses has more than doubled year over year, while daily transactions recently reached a record high of 2.8 million, representing an increase of roughly 125% compared with last year, based on Etherscan data.
Lower Fees and Layer-2 Growth Support Adoption
Analysts attribute the rising activity to lower transaction fees and increased stablecoin usage, along with Ethereum’s continued shift toward layer-2 execution while maintaining settlement on the main network.
Buterin Highlights Major Milestone
Last week, Ethereum co-founder Vitalik Buterin said the network has effectively solved the blockchain trilemma, marking a milestone that many in the crypto industry once considered out of reach.
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Summary
Ethereum is showing strong signs of long-term strength as staking demand surges and the validator exit queue drops to zero for the first time since mid-2025. With more ETH being locked into staking contracts, sell-side pressure is easing while institutional participation continues to grow. At the same time, on-chain data shows a sharp rise in new users, higher retention, and record transaction activity, supported by lower fees and expanding layer-2 adoption. Together, these trends point to tightening ETH supply and improving network fundamentals, even as prices remain below previous highs.
