According to CoinDesk, the waitlist for new Ethereum validators has reached its longest since early October, with the validator entry queue jumping to 7,045. This represents over 225,000 ether ($562 million) and is expected to be cleared in just over 48 hours. The Ethereum network limits the number of new validators that can join per epoch, resulting in a backlog. Validators stake a minimum of 32 ether in the network to participate in running Ethereum’s proof-of-stake consensus blockchain, receiving a steady rate of return in exchange.
David Lawant, head of research at institutional crypto exchange FalconX, noted that the resurgence in Ethereum staking activity indicates initial signs of renewed vitality. However, the annualized percentage yield on staked ether has seen little to no improvement, with CoinDesk’s composite ether staking rate hovering between 3.5% and 4% for the fourth straight month. This offers barely any premium compared to the 4.17% yield on the 10-year U.S. Treasury note.
While the number of stakers looking to join the network has spiked, it remains well below the figures of over 75,000 seen following Ethereum’s Shapella upgrade in April last year. The waitlist for validators looking to exit saw a brief spike in early January after failed crypto lender Celsius revealed plans to unstake its entire ether holdings. Ether's performance has lagged behind bitcoin, with uncertainty surrounding the potential launch of U.S.-based spot ETFs and the need for more clarity in the SEC’s categorization of ether affecting traders' decisions.
