Ethereum’s network dynamics are changing in ways that could reshape the market structure. According to on-chain data, approximately 30% of the total supply of Ethereum (ETH) is currently locked in staking contracts, an all-time high for the protocol’s proof-of-stake ecosystem.
Related article: Bitcoin is “no longer digital gold,” says Deutsche Bank strategist
Despite the ETH price struggling below the $2,000 level in recent sessions, staking-related activity continues to increase. According to analytical data, approximately 36.6 million ETH are currently staked, which means that a significant portion of the circulating supply has been effectively removed from the liquidity market.
The increase in stake supply appears to be partially driven by institutional and whale accumulation. Large players like BitMine are increasing their stake holdings, and smaller wallets are also showing interest in locking up ETH for validator rewards.
ETH's price trends to the downside on the daily chart. Source: ETHUSD chart on Tradingview
Ethereum staking impact on demand and supply
Record staking ratios now exceed 30% of total supply, indicating a structural change in Ethereum’s supply dynamics. Validators who have locked ETH have to commit to long lead times before withdrawing, and the current exit queue remains minimal compared to new stakes.
From a liquidity perspective, staking removes tens of billions of dollars worth of ETH from active circulation. Reduced liquidity could amplify price volatility if demand reignites, but it also raises questions about short-term volatility amid current macroeconomic conditions and broader crypto market pressures.
The recent price slump has seen ETH trading below key support levels, with analysts pointing to a mix of technical vulnerabilities and the possibility of fresh accumulation at lower levels.
Whale behavior also emphasizes this theme. On-chain indicators show that large holders are changing their exposure, increasing their positions while reducing their reserves, especially through staking channels that minimize selling pressure.
Market outlook for ETH price amid supply disruptions
Ethereum price movements remain sensitive to broader market factors, including macroeconomic data and liquidity flows within the crypto sector. However, with the increase in the share of staked ETH, the supply situation will change. With nearly a third of the tokens locked, immediate selling pressure is likely to be muted.
Analysts suggest that this tight supply and whale accumulation could play a key role in price trends if market sentiment changes.
Related article: Bitcoin hoarding could continue with new preferred stock plan: Strategic CEO
The convergence of record staking levels and targeted accumulation creates the backdrop for Ethereum’s underlying network engagement to intensify despite the price lag, setting the stage for a potentially different phase of the asset’s market cycle.
Tradingview ChatGPT, ETHUSD chart cover image
editing process for is focused on providing thoroughly researched, accurate, and unbiased content. We adhere to strict sourcing standards, and each page is carefully reviewed by our team of top technology experts and experienced editors. This process ensures the integrity, relevance, and value of your content to your readers.