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Ethereum Staking Ratio Rises to 36.32% Despite Price Drop, Signaling Steady Investor Confidence
Summary
- As Ethereum's price falls, its staking ratio has climbed to 36.32%, indicating investors are maintaining their long-term holding stance.
- The report said a high staking ratio could support prices by reducing the amount of ETH supply available for immediate trading.
- Still, validators can withdraw from staking at any time and recent staking inflows have dropped 40.11%, though the rise in the staking ratio could limit growth in liquid supply over the medium to long term.
Forecast Trend Report by Period
Ethereum's staking ratio has continued to rise even as the token's price declines, suggesting investors remain committed to holding for the long term.
Pelin Ay, a CryptoQuant contributor, wrote in a post on X on Nov. 10 that Ethereum's staking ratio has increased by about 4.32% since May. Roughly 36.32% of the total ETH supply is now locked in staking.
Over the same period, Ethereum's price fell to $2,132 from about $2,800 in October on Binance. The rise in staking participation despite weaker prices suggests investors are continuing to deposit their holdings into the network rather than sell them on the market.
Ay said the elevated staking ratio could support prices by reducing the amount of ETH immediately available for trading. He added, however, that staked supply is not permanently removed from circulation because validators can exit staking at any time.
Meanwhile, recent staking inflows have fallen 40.11%. Ay wrote that the drop in daily new staking inflows and the rise in the overall staking ratio should be viewed as separate trends.
"The key point is that the staking ratio continues to rise even as ETH prices fall," he wrote, adding that this could help limit growth in liquid supply over the medium to long term.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.