Ethereum Validator Output Queue Reaches Zero, Easing Selling Pressure
The Ethereum network validator output queue has fallen back to zero for the first time since July last year, which could ease selling pressure, analysts say. According to data from Beaconcha.in, the current output queue is only 32 Ether (ETH), with a waiting time of around a minute. This significant reduction is a 99.9% decrease from its peak of 2.67 million ETH in mid-September.
Meanwhile, the sign-up queue has reached 1.3 million ETH, its highest level since mid-November, signaling renewed interest in Ether staking. This trend suggests that validators are increasingly choosing to stake their ETH, rather than selling it, which could lead to a decrease in selling pressure. Rostyk, chief technology officer of Asymetrix and ETHKyiv founder, noted that the ETH staking queue is “basically empty,” and “nobody wants to sell their staked ETH.”
Tevis, the founder of the AlphaLedger trading app, also commented on the situation, stating that “ETH exchange reserves are at their lowest level in a decade. Selling pressure is easing and now we see the inbound queue of validators far exceeding the outbound queue (driven by BitMine and ETFs staking their ETH for yield.” This shift in staking pressure could have a positive impact on the Ethereum network, as it indicates a growing trust in the asset and a willingness to lock it up for long-term storage.
No Backlog of Validators Waiting for the Exit
The validator exit queue primarily controls the speed at which validators can fully exit or exit participation in network consensus and validation. This queuing rate limits voluntary or truncated exits to prevent sudden mass departures that could impact network stability. Validators remain active and earn rewards, but risk penalties while waiting in the queue.
A zero exit queue means there is no backlog of validators waiting to initiate their full exit. This suggests less overall pressure to unstake and fewer mass exits, allowing all new exit requests to be processed immediately. In December, observers predicted that the exit queue could fall to zero, and this has now become a reality.
BitMine Increases the Use of Ether
The world’s largest Ether digital asset treasury, BitMine, has been aggressively staking the asset in recent weeks. The company began staking ETH on December 26th and added an additional 82,560 Ether to the sign-up queue on January 3rd, worth approximately $260 million. According to its recent announcement, BitMine has staked a total of 659,219 ETH, worth $2.1 billion at current market prices.
BitMine, led by Tom Lee, currently holds just over 4.1 million ETH, or about 3.4% of the total supply, worth around $13 billion. This significant investment in Ether staking demonstrates the company’s confidence in the asset and its potential for long-term growth.
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