The Ethereum staking market experienced a sudden reversal at the end of the year, with the amount of ETH being staked exceeding the amount being staked for the first time in six months, even reaching more than double the amount. This indicator, which has successfully predicted strong ETH price movements in the past, has reappeared, driven by massive buying from institutions like BitMine, Pectra's upgrades improving the staking experience, and the DeFi deleveraging trend, and is expected to become a catalyst for further ETH price increases.
ETH staking queues surge, with new ETH entering the market exceeding 740,000.
Data shows that the Ethereum validator entry queue has surged recently, with a current staked amount of 745,000 ETH waiting to enter, estimated to take nearly 13 days; in contrast, the exit queue has only 360,000 ETH, with a waiting time of about 6 days.
Both sides remained roughly equal on December 27th, but then the price suddenly surged vertically. Since staking represents long-term locking and unstaking can create selling pressure, this data is a key indicator affecting the price movement of ETH.
The last reversal propelled ETH to new highs; is the price poised to repeat its upward trend?
Abdul, head of DeFi at Monad, pointed out that a similar reversal occurred in June of this year, with the price of ETH subsequently surging from $2,800 to nearly $5,000 within two months. He believes that exiting the staking queue is the most direct indicator of selling pressure, and since July, the market has been under pressure from unstaking, but a large portion of this supply has already been absorbed.
He estimates that approximately 5% of the ETH supply has already changed hands, with 70% of that already acquired by BitMine. At the current rate, he further predicts that the unstaking queue will reach zero on January 3rd, signifying a reduction in selling pressure.
Analyzing the catalysts for staking demand: BitMine and Pectra upgrades coupled with DeFi deleveraging
The market generally believes that the biggest driver behind the surge in new entrants is BitMine, the ETH reserve company headed by Ethereum bull Tom Lee.
According to on-chain analytics tool Lookonchain, BitMine staked 342,000 ETH, worth approximately $1 billion, in just two days, bringing its holdings to 3.4% of the circulating supply.
Meanwhile, Pectra's upgrade and changes in the DeFi market have also driven a surge in staking demand. The upgraded staking experience is smoother, and the maximum validator limit has been increased, enabling large institutions to deploy larger amounts of ETH.
On the other hand, the rise in Aave's borrowing rate has forced the liquidation of some stETH leveraged revolving loan positions, causing ETH to flow back from leveraged strategies and back into staking. These factors interact to add further impetus to the demand in the staking queue.
Will ETH see a fresh start in the new year? The market performance during the Lunar New Year is highly anticipated.
With the cooling of unstaking activity, BitMine's buying presence, and Pectra's upgrades improving the entry of large holders, the supply and demand dynamics of Ethereum are shifting. Although the short-term price of ETH is weak due to overall market conditions, the significant reversal in staking trends has led to speculation that the next round of price increases may be brewing.
This article, which hasn't been published in six months, discusses Ethereum's entry into the staking queue surpassing exits for the first time. Is ETH about to rise? It first appeared on ABMedia, a ABMedia .
