In a notable shift for the Ethereum network, the entry queue for staking has overtaken the exit queue, suggesting a positive change after three consecutive months of selling pressure attributed to unstaking. Analysts are closely examining this development to assess its implications for ETH”s price trajectory.
The entry and exit queues are essential metrics that track the amount of ETH awaiting staking or unstaking. Analysts had previously warned that continued growth in the entry queue could exacerbate selling pressure. However, data from ValidatorQueue indicates that since September 10, the entry queue has indeed surpassed the exit queue, signaling a reversal in the previously dominant trend. Currently, about 745,600 ETH are queued to enter staking, compared to approximately 360,500 ETH waiting to exit.
Analyst CryptoHuntz characterized the recent movement of ETH as a “Great Migration,” which has significantly impacted its value, causing a drop from $4,800 in early September to around $3,000 now. “The Great Migration is over… finally, the selling pressure from the last three months is drying up. Demand to enter ETH staking is back in the driver”s seat. Nature is healing,” stated CryptoHuntz.
Furthermore, Abdul, Head of DeFi at Monad, has provided a more bullish perspective, referencing historical price patterns. He estimated that roughly 5% of ETH”s supply, equating to approximately $15 billion, has changed hands since July. His analysis suggests that the validator exit queue might reach zero by January 3, which could set the stage for a price recovery. Notably, the last time the entry queue exceeded the exit queue was in June, leading to a subsequent doubling of ETH”s price.
Adding to the optimism, Tom Lee, chairman of BitMine, which holds the largest ETH treasury globally valued at around $12 billion, has decided to participate in staking. Reports indicate that BitMine has staked approximately 74,880 ETH, valued at about $219 million, into Ethereum”s staking contract, aiming to generate yield that could potentially reach $371 million annually at a 3.12% APY.
Despite these positive indicators, caution is warranted as the market still exhibits sideways trends. On-chain metrics suggest that selling pressure from US-based investors remains a concern. Therefore, while the shift in the staking dynamics presents a constructive outlook for Ethereum, the path forward may still encounter challenges.
