Ethereum’s staking dynamics have shifted sharply this week, with signs pointing to renewed confidence among large holders and institutional players.
Data from the network shows that the validator exit queue has fallen to zero, marking a near-total reversal from the heavy withdrawal pressure seen late last year.
At its peak in mid-September, more than 2.6 million ETH was lined up to leave the staking system, creating lengthy exit delays. That backlog has now fully cleared, with exit wait times reduced to minutes rather than days. Market participants often interpret an empty exit queue as an indication that selling pressure linked to unstaking has largely run its course.
At the same time, fresh capital is flowing back into staking. The validator entry queue has expanded to roughly 1.3 million ETH, its highest level since November, suggesting that holders are once again opting to lock up ether in exchange for yield rather than keep it liquid.
This reversal in flows comes amid growing institutional involvement in Ethereum staking. Treasury-focused firms and regulated investment products have increasingly embraced staking as a yield-generating strategy, reshaping the composition of Ethereum’s validator base.
One of the most visible participants is BitMine, the world’s largest Ethereum treasury company. The firm began staking ether in late December and added more than 82,000 ETH to the staking queue earlier this month, according to blockchain analytics firm Arkham Intelligence. BitMine now has approximately 659,000 ETH staked, valued at around $2.1 billion, out of total holdings exceeding 4.1 million ETH, roughly 3.4% of Ethereum’s circulating supply.
Momentum on the institutional front was reinforced this week when Grayscale’s Ethereum Staking ETF became the first U.S.-listed spot Ethereum ETF to distribute staking rewards. The fund issued its initial payout to eligible shareholders on Jan. 5, reflecting rewards accrued during the final quarter of 2025. Shares began trading without the dividend the following session.
Network data shows Ethereum is currently secured by 975,088 active validators, with a combined 35.67 million ETH staked. While participation has broadened, staking power remains concentrated among a handful of major operators. Lido DAO accounts for just over 22% of all staked ether, followed by Binance, Ether.fi, Coinbase, and Figment. A small portion of staked ETH remains unattributed.
Ether’s price has responded modestly to the shift in staking flows, rising nearly 2% over the past 24 hours to trade near $3,220. Despite the recent uptick, the asset remains well below its all-time high of $4,953 reached in August 2025.
Taken together, the collapse of the exit queue and the rise in new staking commitments point to a market that is increasingly comfortable locking capital into Ethereum’s long-term security model, this time with institutions playing a central role.
