Ethereum staking reaches equilibrium: how the absence of queues impacts ETH valuation

ConfusedWhale · 2026-01-13T10:00:18+00:00

Staking on Ethereum has improved by removing validator queues, allowing for smooth access and an enhanced experience. However, rewards have decreased, and competition from other ecosystems has fragmented the market, affecting ETH price expectations.

ConfusedWhale

2026-01-13 10:00:18

Abstract generation in progress

Staking on Ethereum has undergone a significant transformation. The network no longer faces long validator queues, allowing new participants to enter and exit the protocol without extended liquidity lockups. This represents a fundamental shift: we have moved from a scarcity scenario to one of stability.

What does it mean that staking queues have cleared?

Staking involves users locking their ETH on the network to validate transactions and earn rewards. When queues were congested, thousands of validators waited months to activate. With queues cleared, this process now happens in real-time, improving user experience and protocol flexibility.

Rewards compress as the amount of staked ETH grows

Staking rewards have compressed around 3% annually as more ETH is locked on the network. This dynamic occurs because the growth of staked ETH outpaces both new token issuance and transaction fee revenues. The result: an unlimited staking market without artificial supply restrictions.

DeFi fragmentation limits ETH’s bullish potential

Although Ethereum maintains a dominant position in the DeFi industry with 58% of total value locked (TVL), its position is less dominant than years ago. The TVL on Ethereum is around $74 billion, significantly below its $106 billion in 2021. Emerging ecosystems like Solana and Base are capturing an increasing share of the market, dispersing liquidity and fragmenting activity.

Market psychology: moderate expectations for ETH price

This combination of factors—a limitless staking supply, competition from other ecosystems, and declining relative dominance—is influencing bullish expectations in prediction markets. Only an 11% probability is assigned to ETH reaching a new all-time high before March 2026, reflecting moderate skepticism about its short-term potential.

The disappearance of staking queues does not necessarily benefit ETH’s price; on the contrary, it has normalized access to rewards, neutralizing a psychological impulse that previously generated FOMO among investors.

ETH6,2%

SOL2,68%

DEFI1,02%

FOMO-0,76%

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