Ethereum Staking Reaches Record 33% of Supply

Ethereum's liquid supply has tightened significantly, with staking participation reaching a record high and exchange reserves dropping to their lowest levels in nearly eight years, potentially setting the stage for reduced selling pressure and heightened price sensitivity.

Data from staking provider Everstake shows that approximately 38.1 million ETH, or 33.1 percent of the circulating supply, is now locked in staking contracts. This marks the highest staking ratio ever recorded, reflecting a growing trend among holders to commit tokens to the network's proof-of-stake mechanism for security and rewards. The validator entry queue currently holds 2.88 million ETH, with new participants facing an average wait of nearly 50 days before activation. In comparison, the exit queue contains just 40,500 ETH, processed in under 17 hours. Ethereum's protocol limits churn to 256 validators per epoch, ensuring that staked ETH cannot flood back into circulation quickly, even amid shifting market conditions.

This imbalance underscores a net inflow into staking, locking away supply that might otherwise be available for trading. Everstake noted that the steady reduction in liquid supply, combined...