The queue to exit an Ethereum network validator dropped to zero for the first time since July last year, which could ease selling pressure, analysts say.
According to data from Beaconcha.in the current output queue is just 32 Ether (ETH) and the waiting time is about a minute. Down 99.9% from the high of 2.67 million ETH in mid-September.
Meanwhile, the queue of entries reached its highest level since mid-November at 1.3 million ETH, signaling renewed interest in staking Ether.
ETH staking output queue is ‘basically empty’ he said Technology director of Asymetrix and founder of ETHKijów Rostyk. “No one wants to sell their staked ETH,” he added.
“ETH exchange reserves are at a ten-year low. Selling pressure is easing and we now see the validator entry queue significantly outpacing exit queues (driven by BitMine and ETFs staking their ETH for profit,” he said Tevis, founder of the Alphaledger trading app.
Ether staking is sometimes seen as a sign that validators want to free up the asset for sale, change profit opportunities or rebalance portfolios, while staking is seen as a sign of confidence that it can be locked up for long-term storage.
No backlog of validators waiting to be released
The validator output queue primarily controls the speed at which validators can completely exit or stop participating in network consensus and validation.
This queue speed limits voluntary or degraded departures to prevent sudden mass departures that could disrupt network stability. Validators remain lively, earning rewards but risking penalties by standing in line.
Related: Grayscale announces first Ethereum staking payout for US-listed ETF
It is slightly different from a payout queue, which is a payout mechanism for partial withdrawals from validators that automatically collect excess rewards without exiting or stopping participation.
Zero output queue means there is no backlog of validators waiting for full output to be initiated. Indicates reduced overall shutdown pressure and fewer bulk outputs, allowing any fresh output requests to be processed immediately.
In December, observers predicted that the queue to exit could drop to zero.
BitMine increases Ether staking
The world’s largest vault of Ether digital assets, BitMine, has been aggressively investing in these assets in recent weeks.
The company first began staking ETH on December 26, and on January 3, it added another 82,560 ETH worth approximately $260 million to the entry queue. According to the latest announcement, BitMine staked a total of 659,219 ETH worth $2.1 billion at current market prices.
The company, chaired by Tom Lee, currently holds just over 4.1 million ETH, or about 3.4% of the total supply, worth about $13 billion.
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