Ethereum Staking Interest Reaches One-Year High; Over $800M ETH Waiting In Queue

After a shoddy first quarter of the year, demand for Ethereum staking has soared to a one-year high. On-chain data reveals that over $800 million worth of ETH is on the Ethereum validation activation queue, signaling growing institutional interest in the network.

Ethereum Validator Queue Hits Yearly High

According to data from Beaconcha.in, the Ethereum validator queue is ballooning in size with over $800 million ETH jostling to be staked on the network. Per the data, 347,919 ETH are waiting on the Ethereum validator queue, its highest levels in over one year.

The blockchain explorer projects an estimated wait time of six days for new validators to start earning staking rewards on the platform.

Since Ethereum transitioned to Proof-of-Stake (PoS) in 2022, validators are required to lock up 32 ETH to process transactions. However, the network enforces a throttling mechanism to limit the rate of new validator entries. To maintain decentralization, Ethereum relies on a churn limit of 256 validators per epoch.

The surge in both the number of validators and the amount of ETH in the activation queue signals renewed optimism for Ethereum after a rocky start to the year. Historically, long validator queues have followed price spikes, with Ethereum’s price turning bullish as institutional interest reaches frenetic levels.

Why Is The Network Courting Institutional Interest?

There are several reasons behind the recent spike in Ethereum staking interest. First, staking ETH allows validators to earn an annual passive yield, making ETH an attractive asset, often compared to bonds, from an investment perspective.

Additionally, institutional platforms such as Coinbase and Lido are offering staking services to their customers, further driving adoption. However, the primary catalyst behind the increased interest appears to be growing bullish sentiment around the Ethereum network.

A wave of institutional buyers like SharpLink Gaming and BTCS are acquiring ETH on their corporate balance sheets. Apart from the buying spree by institutions, the network is facing a supply shock as a sizable amount of ETH is leaving centralized exchanges

Moreover, investors are bracing for new upgrades to the network with Vitalik Buterin revealing plans for 10X L1 scaling. At the moment, ETH is trading for $2,637, up by nearly 1% over the last day as bulls have their sights on a rally toward $3,000.