Ethereum Staking Exit Queue Hits Zero Amid Record Transactions and Surging Demand

Ethereum just cleared a major milestone: its validator exit queue has dropped to zero for the first time since mid-2025. No more waiting for stakers to unstake—validators can exit in minutes. Meanwhile, the entry queue balloons to 2.6 million ETH, the highest since 2023, with record transaction volumes lighting up the network. As @Twendee_ noted in a recent thread, this combo screams network stability and validator confidence.

Let's break it down. In Ethereum's proof-of-stake system, validators stake 32 ETH each to secure the network. High demand means a long entry queue—currently 2.6 million ETH waiting up to 45 days to join. But the exit queue hitting zero? That's huge. It fell from a September 2025 peak of 2.67 million ETH, per Cointelegraph. No backlog means zero immediate sell pressure from unstaking. Why now? Staking yields hover around 2.8% APR, drawing institutions. BitMine Immersion Technologies staked over 1.25 million ETH—more than a third of their holdings. Total staked ETH sits at 36.1 million (29% of supply), with 77.85 million ETH (46.5%) in the deposit contract. Add record activity: Ethereum processed 2.885 million transactions in a single day last week, topping any bull cycle, according to CoinDesk. Layer-2 efficiency keeps fees low despite the surge, proving the network's scalability post-upgrades. Onchain researcher Leon Waidmann puts it bluntly: 'Exit pressure has fully collapsed. New ETH is being locked, not released. Liquid supply is shrinking.' This flip from exit dominance signals growing participation and faith in Ethereum's future.

The effects are clear. Shrinking liquid supply tightens ETH dynamics—less available for trading amid rising demand. We've seen this before: the last zero exit queue preceded a strong rally. ETH trades around $3,300, down from its $4,946 ATH, but staking lockups could fuel the next leg up. Network health improves too—more validators mean better security and decentralization. Institutions piling in via staking reduces volatility risks, stabilizing prices while transaction booms attract more users and devs.

Ethereum's staking queue flip is a green light for bulls. With exits cleared, entries surging, and records breaking, the network looks rock-solid heading into 2026. Validators are voting with their ETH: they're in for the long haul. Keep watching those queues—they're the real supply story. ETH's best chapter might just be starting.