Ethereum validator queues drop to record lows

The entry and exit queues for Ethereum blockchain validators have dropped to new lows, briefly hitting zero earlier today, according to data from Validator Queues.

This marks a significant change in the staking landscape. In May 2023, over 90,000 validators waited more than 40 days to join the network. As it stands, merely a few validators are in the entry and exit queue — and their initiation process is almost immediate.

Additionally, the exit queues for validators intending to withdraw their staked ETH and cease validation are minimal, standing at just under five. This implies that existing validators are largely content to maintain their stakes amid the changing dynamics of the staking environment. The time required to complete the exit process has also been reduced to roughly 15 minutes.

Ethereum validator entry and exit queues fall to new lows | Source: ValidatorQueue

The current settings for activation and exit limits for validators — called churn limit — were recently changed from 12 to 13 per epoch, which translates to a daily cap of 2,925 validators that can either join or exit the network. According to analyst Tom Wan from 21 Shares, this allows the network to accommodate up to 93,600 new ETH deposits every day without necessitating that new validators wait longer than a day.

Nevertheless, the requirements for becoming an Ethereum validator remain the same. Individuals looking to participate in the network’s consensus process must still stake a minimum of 32 ETH (~$50,000). In return, validators can expect to earn a yield — albeit a diminished one compared to earlier in the year.

The drop in entry and exit queue length coincides with a significant decrease in the staking yield (also called staking rewards reference rate) for Ethereum validators, which currently stands at approximately 3.3%, down from nearly 8% in May.