Ethereum Staking Hits All‑Time High, Supply Tightens

Ethereum’s staking ratio has just crossed 30%, marking an all‑time high and signaling a major shift in how ETH is held and used. According to data from Token Terminal, the network is now secured by roughly $120 billion worth of staked ETH, with millions more queued to be locked.

Loading tweet...

— View original post

This isn’t just a technical milestone — it’s a liquidity squeeze. Every ETH staked is ETH removed from active circulation. That means less supply on exchanges, thinner order books, and more scarcity during demand spikes.

The trend has been building for years. Since Ethereum’s transition to proof‑of‑stake, staking has steadily absorbed more of the circulating supply. The chart shows a sharp acceleration in early 2023, with the staking ratio climbing from under 15% to over 30% by January 2026.

Why This Matters for ETH

Staking creates a structural supply sink. Unlike short‑term lockups or temporary withdrawals, staked ETH is committed for longer durations, often months. That reduces sell pressure and amplifies price moves when demand rises.

The queue matters too. With millions of ETH waiting to be staked, the pipeline of future lockups is already in motion. That’s bullish. It shows long‑term conviction from holders who aren’t looking to flip — they’re looking to earn yield and secure the network.

For traders, this is a clear signal: Ethereum’s liquid supply is shrinking. And when supply tightens while demand builds — especially with ETF inflows and institutional interest rising — price tends to move higher.