Ethereum Staking Rises to 31% of Supply, Shrinking Tradable Float
Summary
- Ethereum's staking share has risen to about 31%% of total supply, up from roughly 29%% at the start of the year.
- As the staking share expands, the amount of Ethereum available for trading in the market continues to decline gradually.
- The Block said staking demand could also increase as the spot Ethereum exchange-traded fund (ETF) market matures and tokenization activity expands.
Forecast Trend Report by Period
About 31% of Ethereum's total supply is now staked, up from roughly 29% at the start of the year, The Block reported on May 18.
Staking has continued to increase despite recent price weakness. Ethereum has fallen about 26% this year.
The Block said on-chain indicators and network usage have continued to expand even as the token's price has struggled. Ethereum is also serving as key infrastructure in the real-world asset, or RWA, market.
The increase in staking suggests long-term holders are continuing to lock up their tokens. That, in turn, is gradually reducing the amount of Ethereum available for trading in the market.
The spread of liquid staking protocols has also helped drive the increase, according to the report. Services such as Lido allow investors to stake Ethereum while maintaining liquidity.
Institutional flows were also cited as a key variable. The Block said staking demand could rise further if the spot Ethereum exchange-traded fund market matures and tokenization activity on Ethereum expands.
It added that Ethereum is serving as core infrastructure for RWA settlement, decentralized finance, or DeFi, and the Layer 2 ecosystem.
Ethereum was trading at $2,130.43 on Binance's USDT market, down 1.89% from a day earlier.
Suehyeon Lee
shlee@bloomingbit.ioI'm reporter Suehyeon Lee, your Web3 Moderator.
