The queue for staking Ether (ETH) has reached a peak not seen since 2023, driven by a significant uptick in institutional demand and confidence in the network.
As of Tuesday, on-chain data reveals that approximately 860,369 ETH—valued at about $3.7 billion—awaits staking on the Ethereum platform. This surge marks the largest backlog since the behavioural changes introduced in September 2023.
Everstake, a well-known staking protocol provider, noted the notable rise in staking queues, which haven’t been observed at such levels since the Shanghai upgrade allowed withdrawals last year.
The increase in the staking validator queue stems from multiple factors, including enhanced confidence in Ethereum’s long-term value, favorable market conditions, rising ETH prices, and reduced transaction fees. Furthermore, a growing number of companies and investment funds are actively entering the Ethereum staking ecosystem, bringing significant capital inflows.
Declining Exit Queue Eases Sell-Off Concerns
The growing staking queue alleviates worries that an expanded exit queue would trigger a significant ETH sell-off following its record high on August 24. After the exit queue peaked at just over 1 million ETH on August 29, it has since decreased by 20%, signaling a slowdown in unstaking activity.
Current figures show 35.7 million ETH is staked, representing roughly 31% of the total circulating supply, with a market valuation near $162 billion per Ultrasound.Money statistics.
Institutional Treasury Accumulation and Staking Activity
Corporate treasury funds have been increasing their Ether holdings, collectively acquiring 4.7 million ETH, which constitutes nearly 4% of ETH’s total supply. These assets, valued around $20.4 billion, are managed by over 70 entities, according to StrategicEtherReserve.
Most of these institutional players are either staking their Ether or plan to do so to leverage additional yields, a development steadily raising the staking queue.
Meanwhile, Ether’s price has declined slightly by 1.2% to approximately $4,321 at the time of writing, slipping 12.4% since the all-time high on August 24 amid retail profit-taking.
These dynamics reflect a maturing market where institutional actors play an increasingly critical role, bolstering confidence and activity in Ethereum’s staking landscape.
