[Analysis] "Ethereum staking ratio hits an all-time high… higher likelihood of a 'supply shock'"

Ethereum’s (ETH) staking ratio has recently set a new all-time high, according to data, fueling analysis that the likelihood of an Ethereum “supply shock” is rising.

An Arab Chain contributor to CryptoQuant wrote on the 24th (local time) via CryptoQuant that “(recently) Ethereum’s staking ratio surged to around 31.4%, marking an all-time high,” adding that this “means a substantial amount of Ethereum is locked up outside the trading market.”

Holdings of Ethereum on centralized exchanges (CEXs) are trending lower. Arab Chain said, “Binance’s Ethereum holdings have fallen to the lowest level since 2020,” and added, “around 38.31 million ETH are currently staked, which is the highest level on record.” He continued, calling it “a key signal showing that the amount of supply that can actually be sold in the market has dropped to a historically low level.”

Arab Chain emphasized that “as a result, about one-third of the total Ethereum supply is no longer immediately sellable, and market liquidity has shrunk sharply.” He analyzed that “this reinforces the trend of investors shifting toward long-term holding and staking rather than short-term trading,” adding that “the structure in which circulating supply declines is also strengthening.”

Arab Chain also assessed that the possibility of an Ethereum supply shock is increasing. He said “this trend suggests not merely a supply-demand shift but a change in the market structure itself,” adding that “the current Ethereum market is seeing strong constraints form on the supply side, and if demand increases going forward, limited liquidity makes it highly likely that price reactions will be far larger than in the past.” He added, “this is a classic supply-shock setup and could act as a key factor that intensifies upward pressure.”