Join the queue to bolster Ethereum and reap ETH rewards!

In a significant development for the Ethereum network, the queue to become an Ethereum validator has reached its highest level in two years, according to recent reports. With over 860,000 ETH, worth around $3.7 billion, waiting in line, the surge in interest can be attributed to a combination of factors.

The network's control mechanism, which requires ETH deposits to become a validator, has seen an increase in participants. Meanwhile, the lower network fees on the Ethereum blockchain have also been highlighted as a potential cause for the high queue levels.

The Shanghai upgrade earlier this year enabled ETH stakers to withdraw their capital for the first time, which could be another factor contributing to the increased demand to become a validator.

Network fees on the Ethereum blockchain have dropped nearly 40% over the past month, even as network activity reached record levels. This decrease in fees could make validator positions more attractive to potential participants.

The surge of investment in ETH treasury firms, such as BitMine Immersion, may be partly responsible for the high queue levels. BitMine Immersion, a treasury firm, has grown its ETH holdings to $8.1 billion and aims to accumulate 5% of the total Ethereum supply.

Cathie Wood's ARK Investment Management made a large investment into Bitmine last week, further fuelling the interest in ETH treasury management companies.

Investors are increasingly shifting their unstaked Ethereum into treasury companies, with the promise of potentially "double or triple their money when lock-ups expire." This trend, combined with the Shanghai upgrade, could explain the influx of new validator applicants.

Illia Otychenko, lead analyst at CEX.IO, stated that the current queue results are "pretty striking." Rajiv Sawhney, head of international portfolio management at Wave Digital Assets, also believes the recent surge in Ethereum is partly due to capital flowing toward ETH treasury management companies.

The impressive returns from SharpLink's PIPE offering in May, which raised over $500 million in private capital to invest in staked Ethereum, may have encouraged other investors. However, the search results do not provide information on which institution has achieved the largest capital increase in ETH treasury firms in recent weeks.

As of now, Ethereum is trading at $4,416, up 4.6% over the past 24 hours. With the high demand for validator positions and the continued interest in ETH treasury firms, it's clear that Ethereum remains a popular choice among investors.

A notable incident in August caused the price of ETH and Lido Staked Ether to decouple, forcing many leveraged investors to sell off and causing unusual patterns within the validator queues in the following weeks. This incident may have also played a role in the current queue situation.

According to a Myriad Linea market survey, 77% of respondents believe that Ethereum will hit $5,000 by year's end, reflecting the overall bullish sentiment towards the cryptocurrency.

As the Ethereum network continues to evolve, it will be interesting to see how the validator queue develops in the coming weeks and months.