ETH Exit Queue Surges to 610K, but Staking Demand Remains Resilient

The Ethereum validator exit queue has surged to 610,664 ETH, valued at approximately $2.26 billion, reaching its highest level since January 2024. The average wait time to exit staking now exceeds ten days. According to CoinDesk, analysts attribute the surge in withdrawals to profit-taking, as ETH has rallied over 160 percent since April.

Despite the large volume of exits, staking demand remains strong. The entry queue has climbed to 350,757 ETH, worth around $1.3 billion, with a wait time of over six days. The persistent inflow signals ongoing confidence in Ethereum staking, particularly from institutional players.

Since February 2025, the number of active Ethereum validators has climbed from a yearly low of approximately 1,046,636 to a peak of 1,093,671 by mid-July. Validator participation declined gradually from March to May, reflecting a period of hesitation in the market. However, the trend reversed sharply after the U.S. Securities and Exchange Commission clarified in late May that staking does not violate federal securities laws. This regulatory clarity sparked a surge in institutional interest and renewed confidence in Ethereum’s staking ecosystem.

One notable participant is Sharplink (NASDAQ: SBET). Though primarily known as a sports‑betting affiliate marketing company, Sharplink has pivoted to holding Ethereum as its main treasury asset. As of July 20, it held 360,807 ETH and generated 567 ETH in staking rewards since starting its strategy on June 2.

Exit Queue Surge Recalls Celsius-Led Withdrawal Wave in Early 2024

In comparison, January 2024 saw a similar spike when Celsius Network unstaked 202,090 ETH, worth about $446 million. This large withdrawal triggered a nearly six-day wait in the validator exit queue. Under normal network conditions, fewer than 1,000 validators request to exit, and the process is usually completed within 24 hours.

As of July 22, Ethereum’s staking participation has reached a record 29.4 percent of the total ETH supply. This marks a clear increase from 28.1 percent earlier in the year and a recovery from the yearly low of 27.2 percent in March.