The line to exit ethereum $ETH ( ▼ 0.98% ) staking has completely disappeared, while the queue to enter continues to grow, a dynamic that points to rising conviction among ETH holders as staking becomes more embedded in ETFs and corporate treasury strategies.
The exit wait for validators has fallen to zero days, down from a record backlog of more than 46 days last September. At the same time, the staking entry queue has ballooned to more than 25 days, with roughly 1.46 million ETH currently waiting to be locked up in the network.
Why exits are gone and entries keep piling up
Analysts say the imbalance reflects growing confidence in ethereum’s outlook. Higher staking inflows are typically seen as a signal that holders expect higher prices ahead, while the lack of exits suggests deleveraging pressure has largely played out.
Last year’s spike in exit queues was driven in part by a one-time event, when staking platform Kiln initiated a precautionary rotation of its validators, temporarily clogging the system. That backlog has now fully cleared.
Institutions and ETFs are changing the staking picture
A new wave of demand is coming from traditional finance. Asset managers, hedge funds, and crypto treasury firms are increasingly looking to earn ethereum’s base yield through staking rather than simply holding tokens.
BitMine Immersion Technologies $BMNR ( ▲ 3.03% ), the largest ethereum treasury firm, began staking part of its holdings in December. ETF providers are also pushing the trend forward, with firms like Grayscale recently distributing staking rewards to ETF shareholders.
As long as entry queues stay crowded and exit lines remain empty, analysts say it points to capital being locked away for the medium to long term, reducing circulating supply and supporting a more constructive outlook for ethereum.