Ethereum's staking queue is backing up faster than a crypto exchange during a bull run, thanks to one massive whale making waves. BitMine Immersion (BMNR), helmed by Fundstrat's Thomas Lee, has pushed the network's validator entry wait time to over 44 days—the longest since late July 2023. That's a backlog of over 2.55 million ether, worth roughly $8.3 billion, all waiting to be activated for staking rewards. It’s like the line at a popular airdrop event, but instead of free tokens, everyone’s waiting for yield.
The Ethereum network has a daily limit on new validators to prevent sudden shocks to stability, creating an overflow queue. BitMine, sitting on over $13 billion worth of ETH, confirmed it has staked over 1.25 million tokens—more than a third of its holdings—clogging the entry for everyone else. With nearly 3 million more ETH still on its balance sheet, the line could grow even longer. Blockchain data shows BitMine transferring hundreds of millions in ETH recently, likely for more staking. This isn't just a line; it's a digital traffic jam where the lead car is a dump truck full of ETH.
This is a sharp reversal from just a few months ago, when the network was clogged in the opposite direction with validators trying to exit, pushing exit wait times to 46 days due to an infrastructure issue with staking provider Kiln. Back then, the panic was about getting out; now, it’s all about getting in. The network’s exit ramp was jammed, and now the entrance is a parking lot. It’s the crypto version of a revolving door that’s currently spinning in only one direction.
The entry backlog hits as institutional staking demand is heating up. ETF issuers and large players are watching as U.S. regulators define staking rules. In December, BlackRock filed for a staked ether ETF, following Grayscale's move to add staking to its ether-focused funds. The suits are lining up, and BitMine just cut to the front of the line, leaving everyone else to wait for the velvet rope to open.
"The activation pressure is likely to persist," said Josh Deems, head of revenue at Figment, an institutional crypto staking provider. "Many approved ETPs and treasuries are yet to fully activate staking, and these vehicles collectively hold roughly 10% of Ethereum’s circulating supply." This gridlock could complicate asset management for large players, causing them to miss over a month's worth of staking yield income while waiting in line. For institutions, waiting isn't just annoying; it's expensive, turning potential profits into a slow drip while the whale ahead of them soaks up the rewards.
