Ethereum Validator Queue Hits Two-Year High as BitMine Staking Surge Strains Network

Ethereum’s staking ecosystem is facing its longest validator activation backlog since mid-2023, as a massive influx of ether staking led by BitMine Immersion (BMNR) places fresh strain on the network. More than 2.55 million ETH, valued at approximately $8.3 billion, is currently waiting in the activation queue, pushing the estimated wait time for new validators beyond 44 days before they can begin earning staking rewards.

This marks the largest entry backlog since late July 2023, shortly after Ethereum fully transitioned to proof-of-stake and enabled validator withdrawals. Ethereum relies on validators to secure the blockchain and process transactions, but to preserve network stability, it limits how many new validators can join each day. When demand exceeds that limit, new entrants are placed in a queue, causing extended delays during periods of heightened staking activity.

At the center of the current surge is BitMine Immersion, an Ethereum-focused treasury firm led by Fundstrat’s Thomas Lee. The company holds more than $13 billion worth of ETH and has already staked over 1.25 million tokens, representing more than a third of its total holdings. With nearly 3 million additional ETH still unstaked on its balance sheet, blockchain data suggests BitMine may continue adding to the queue, potentially extending wait times even further. Recent on-chain activity shows the firm transferring hundreds of millions of dollars’ worth of ETH, likely in preparation for additional staking.

The situation highlights a sharp reversal from just a few months ago, when Ethereum experienced congestion from the opposite direction. In September and October, thousands of validators attempted to exit simultaneously, largely due to infrastructure issues at institutional staking provider Kiln, which pushed exit wait times to roughly 46 days.

The renewed entry backlog comes as institutional interest in Ethereum staking continues to grow. ETF issuers and large asset managers are closely monitoring regulatory developments in the U.S., particularly around staking permissions. In December, BlackRock filed for a staked ether ETF, following Grayscale’s efforts to incorporate staking into its ETH-based products. According to industry estimates, exchange-traded products and corporate treasuries collectively control around 10% of Ethereum’s circulating supply, much of which has yet to be fully staked.

As institutional participation accelerates, prolonged validator queues could create operational challenges, forcing large investors to forgo weeks of potential staking income while waiting for activation.