The queue to become an Ethereum validator — the on-ramp that lets holders stake ETH and earn rewards — hit its highest level since September 2023 as more capital rushes toward staking services.
About 860,000 ETH, roughly $3.7 billion at current prices, are waiting in line, according to validator operator Everstake. Because of Ethereum’s deposit and exit controls, no more than 900 validators can enter and 1,800 can exit each day, meaning it will take about 14 days to clear the backlog at current rates, CEX.IO lead analyst Illia Otychenko told Decrypt.
Analysts point to two main drivers. First, strong inflows into newly launched Ethereum ETFs — more than $13 billion in recent weeks — have created fresh demand for staking exposure. Second, corporate-size ETH treasuries have ballooned: BitMine Immersion pivoted from Bitcoin mining and now holds about $8.1 billion in ETH, while firms like SharpLink raised large private rounds to back staked-ETH strategies.
Lower on-chain costs have also helped. Network fees have fallen by nearly 40% over the last month even as activity reached record levels, making staking easier and more attractive for retail and institutional investors alike. Earlier market turbulence — including an August decoupling between ETH and Lido’s stETH — produced unusual queue behaviour as leveraged positions unwound.
What this means for users: expect some delay before new stakes become active, and be aware that staking through treasuries or custodial services can introduce lock-ups and counterparty risk. Institutional flows are reshaping validator economics, which could compress rewards or change liquidity patterns if inflows continue.
Source: Decrypt. Read the original coverage for full details.