According to Huoxing Finance, on July 31, Thomas Brunner, Head of Custody and Staking at Sygnum Bank, stated that the number of ETH in the Ethereum validator queue has increased to approximately 2.5 million ETH, requiring new stakers to wait about 43 days for activation. However, this data should not be simplistically interpreted as a bullish signal, as the backlog reflects both institutional demand and protocol mechanics. Brunner noted that the Dencun upgrade reduced the daily validator entry capacity to approximately 57,600 ETH, and the Pectra upgrade did not increase this limit. Meanwhile, Pectra allows individual validators to hold up to 2,048 ETH and automatically compound rewards; large operators are now adding additional ETH to existing validators—even adding just 1 ETH requires joining the same queue as new stakers. Thus, part of the current backlog stems from reconfiguration and compounding of existing stakes, not solely from new ETH demand. In contrast, the nearly empty exit queue provides a clearer signal. Brunner said: “Almost no one is unstaking, which reflects genuine confidence; the entry queue measures both demand and infrastructure mechanics.” Currently, approximately 41.2 million ETH are staked, accounting for 33.8% of the circulating supply. He also noted that institutions have not ceased participation due to weaker ETH prices, with many viewing staking rewards as an intrinsic feature of ETH. However, validator addresses, deposit addresses, and withdrawal credentials are all traceable, and privacy remains a primary obstacle to institutional expansion of staking.
Sygnum Bank: Ethereum Staking Backlog Is Not a Clear Bullish Signal
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Summary
Ethereum news: On July 31, Sygnum Bank’s Thomas Brunner said Ethereum’s validator queue contains approximately 2.5 million ETH, with a 43-day wait for activation. He noted this does not indicate a bullish trend, as it reflects both institutional demand and protocol rules. The Dencun upgrade reduced daily entry limits to 57,600 ETH, while Pectra permits 2,048 ETH per validator with compounding. The empty exit queue, with minimal unstaking, may better reflect market confidence.
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