Ethereum validator entry queue reaches two-year peak

Over $3.7 billion worth of Ethereum is waiting to be staked, according to on-chain data. This rise is driven by institutional inflows into Ethereum ETFs and anticipation of upcoming network upgrades. On September 1, 2025, the Ethereum Foundation announced it would phase out the Holesky testnet following the November Fusaka upgrade. The newer Hoodi testnet will provide a more stable testing environment with greater operational efficiency and a stronger focus on staking infrastructure.

The Fusaka upgrade, scheduled for early November, is designed to boost rollup efficiency and cut, while a future upgrade, Glamsterdam, is planned for 2026, will halve block times. These developments are improving the network’s efficiency and scalability, making it even more attractive to large-scale investors.

At the same time, US spot Ethereum ETFs have attracted billions of dollars in inflows, with over $4 billion in net inflows in August 2025 alone, according to SoSo Value. This notably outpaced Bitcoin ETFs during the same period, signalling a shift in institutional interest.

A large portion of this institutional capital is being used for staking. The ability to earn a yield on their ETH holdings through staking is a powerful incentive for these investors, contributing to the massive queue of ETH waiting to be staked. Staking ETH can be a way to earn passive income. The amount you earn, called the staking yield, varies based on factors such as the total amount of ETH staked on the network and the number of active validators.

The overall returns also fluctuate with Ethereum’s market price. At the time of writing, Ethereum trades at around $4,350, 12.3% below its all-time high of $4,953 reached on August 24, 2025.