The amount of Ether in the queue to be staked has surged to its highest level since 2023 as institutional traders and crypto treasury firms aim to scoop rewards for their holdings.
On Tuesday, the Ethereum staking entry queue reached its highest level since September 2023, with onchain data showing 860,369 ETH, worth around $3.7 billion, waiting to be staked.
“Honestly, this is pretty striking, because we haven’t seen queues of this size since 2023 when the Shanghai upgrade enabled withdrawals,” staking protocol Everstake said.
The firm added that the growth in the validator queue comes down to a mix of factors, including an increase in network confidence.
“More people trust Ethereum’s long-term value and want to participate in securing it.”
There are also great market conditions, as rising Ether (ETH) prices and historically low gas fees make staking more attractive and accessible for users, Everstake said.
Finally, institutional interest has surged, as “more companies and funds are entering Ethereum staking, bringing larger amounts into the chain.”
Ethereum staking entry queue surges to two-year high. Source: Everstake
Exit queue retreats from high
The increase in staking allays some of the recent fears that a surge in the staking exit queue would spark a major sell-off following the asset’s all-time high on Aug. 24.
The staking entry and exit queues almost reached parity for the first time since July after the exit queue hit an all-time high of just over 1 million ETH on Aug. 29, since dropping 20% to indicate a slowdown in unstaking Ether.
Related: 5 signs that Ethereum’s bull market isn’t over below $5K
The blockchain has 35.7 million ETH staked, worth approximately $162 billion, and equating to 31% of the total supply, according to Ultrasound.Money.
ETH treasuries buy and stake amid price drop
Ether corporate treasury funds continue to grow with a total of 4.7 million ETH, or almost 4% of the entire supply worth around $20.4 billion, already purchased by more than 70 participants, according to StrategicEtherReserve.
The majority of these entities have or will stake the asset for additional yields for their strategies, which has boosted the entry queue in recent weeks.
Meanwhile, ETH has retreated a further 1.2% on the day, falling to $4,321 at the time of writing.
Ether has now declined 12.4% from its all-time high on Aug. 24 as profit-taking by retail traders continues.
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