ETH validator entry queue surges, signaling potential network congestion ahead

ETH validator entry queue surges, signaling potential network congestion ahead

Ethereum's validator entry queue has surged to 745,619 ETH, nearly doubling the exit queue for the first time in six months, signaling shifting market dynamics.

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For the first time in six months, Ethereum's staking queue has overtaken the exit queue, with nearly double the amount of Ether awaiting to be staked compared to those exiting the network. Currently, approximately 745,619 Ether is queued for staking, resulting in a wait time of almost 13 days, while the exit queue contains around 360,518 Ether with an eight-day wait, as reported by Ethereum Validator Queue.

The shift occurred on Saturday, when both queues were nearly equal at around 460,000 Ether. Since then, the entry queue has surged, while some observers believe the exit queue may diminish to zero. Abdul, the head of DeFi at Monad, noted that the last occurrence of this queue flip in June coincided with a price surge for Ether, which rose from $2,800 to a peak of $4,946 by August 24.

Abdul predicts that if the exit queue continues on its current trajectory, it could reach zero by January 3rd. He indicated that around 5% of the Ether supply has changed hands since July, primarily due to unstaking activities linked to Kiln, a staking service provider that executed a precautionary exit in September.

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