Ethereum (ETH), the largest altcoin, briefly recovered today, surpassing $3,000, but this was short-lived, and the price retreated back to the $2,900 level.
With the price remaining below $3,000, Ethereum’s staking queue surpassed the exit queue for the first time in six months.
According to Validatorqueue data, there are approximately 745,600 ETH waiting to be staked, while 360,500 ETH are in the exit queue. The staking queue is 12 days and 20 hours long, and the exit queue is 6 days and 2 hours long.
Looking at the data, it appears that the number of organizations wanting to stake ETH is almost twice the number of validators waiting to withdraw their staked ETH.
This shift signals a potential decrease in selling pressure as more investors choose to stake their Ethereum instead of selling it. In other words, it’s interpreted as a sign of recovering medium- and long-term confidence in validators.
Historically, similar patterns have been observed in short-term price increases for Ethereum.
The increase in the Ethereum staking queue is believed to be influenced by the largest institutional Ethereum holders.
This is because the largest institutional ETH investors continue to earn passive income by staking, effectively reducing the supply of tradable Ether on the open market.
At this point, BitMine Immersion Technologies, the largest institutional Ethereum holder, has contributed to this increase.
Crypto data platform Lookonchain reported that Bitmine staked 342,560 ETH, worth over $1 billion, in two days.
Staking is a process that involves locking ETH on Ethereum’s proof-of-stake network and earning a passive return (APY) of approximately 3-5% annually in return.
*This is not investment advice.
