Ethereum's staking queue has flipped the exit line for the primary time in six months, with almost twice as much ETH now waiting to be staked as ETH attempting to depart the network.
According to blockchain explorer Ethereum Validator Queue, the input queue for validators is about 745,619 Ether (ETH) with a waiting time of virtually 13 days, while the output queue is about 360,518 ETH and a waiting time of eight days.
The reversal occurred on Saturday when each queues were about 460,000 people, however the entry queue has since gone vertical, while some argue the exit queue is trending towards zero.
Abdul, the top of DeFi at layer-1 blockchain Monad, said in an
Ether surpassed $2,800 in June; However, on August 24, it hit a brand new all-time high of $4,946. The price is $3,018 on Monday.
Ethereum's staking queue has flipped the output queue for the primary time in six months. Source: Ethereum Validator Queue
Ethereum is a proof-of-stake network that requires validators to stake assets to secure the network. Unstaking is commonly seen as an indication that validators wish to release Ether on the market, while staking is seen as an indication of confidence to lock it up for long-term ownership.
The validator's output queue could reach zero
Abdul said in a Dec. 24 post that the exit queue is a number one indicator of predictable supply flows entering the market via de-staking and that he has been under selling pressure since July.
“I estimate that about 5% of the Ether supply has modified hands since then – that is the explanation Kiln de-staked in September. About 70% of this uncollateralized ETH has been acquired by Bitmine; they now hold 3.4% of the ETH supply,” he said.
Kiln, a staking service provider, initiated an “orderly exit” of all of its Ether validators in September as a security measure following the attack on digital asset investment platform SwissBorg.
“At the present rate, the validator exit queue will reach 0 on January third – after which I expect selling pressure on ETH to ease,” Abdul added.
Digital asset treasuries are gobbling up Ether
Others coping with crypto
On Sunday, blockchain analytics tool Lookonchain noted that BitMine had staked 342,560 Ether value around $1 billion over the past two days.
Meanwhile, the pseudonymous co-founder of DeFi creator studio Pink Brains, Ignas, speculated that the move was on account of the Pectra upgrade improving the staking user experience and raising “maximum validator limits,” making re-staking for giant balances easier.
Ignas also speculated that “DeFi deleveraging as Aave lending rates rose and stETH loopooors were forced to liquidate” can also have contributed.
