Ethereum (Eth) staking levels continue to break records, and the latest snapshots on the blockchain show that nearly 36.1 million eths are betting on the network, the highest level in history.
Ethereum Staking hits new ATH, will the price continue?
Nearly a third of Ethereum's circular supply is currently being staked, according to a post from the encrypted Quick Take by Contributor Xwin Research Japan. This high percentage suggests that ETH may be on the crisis of structural supply shocks.
The next chart shared by analysts shows that staking levels continued to rise even during the rapid revisions in 2022 and 2023. Unlike speculative trends that often withdraw from markets during recessions, staking activities prove “sticky.” Investors choose to lock ETH into the network rather than liquidation.
There are several important implications for staking ETH. First, it compresses the supply – as more ETH is staked, the less liquid supply remains in exchange, creating a natural “supply shock” It will amplify Demand-driven prices move.
Similarly, it shows investors' priorities. By staking ETH, investors essentially work as long-term participants. In this way, instead of short-term transactions, they align their incentives with network security and yields.
ETH's recent $4,500 rally also coincided with record staking levels, creating a feedback loop. Institutional influx The decline in liquid supply has added even more upward pressure from Custodians, Exchange Sales Funds (ETGs), and Whales.
Transition of ETH to institutional assets
ETH ETF currently holds more than $300 billion in reserves, but asset managers such as BlackRock are actively accumulating. This highlights the transition from Ethereum's speculative assets to a supportive yield to the institutionally supported infrastructure layer.
The US-based Spot ETH ETF enjoyed a long string of positive influxes that lasted until the week ending on May 16th and until the week ending on August 15th.
Ethereum's highest staking level ever reveals its underlying strength. While Bitcoin sells its dominance in Takermetric, ETH has experienced structural supply cuts. This divergence highlights Ethereum's growing role not only as a crypto asset, but as the backbone of tokenization, defi, and RWA adoption.
Similar sentiments were recently reflected by Tom Lee, co-founder of Fundstrat Global Advisors. Lee It's attracting attention That ETH is approaching the backbone of the global market.
However, there are still some risks. For example, ETH prices are still delay Despite the ATH of daily network transactions. At the time, analysts said it was likely that ETH was still in the accumulation stage.
Similarly, recent prices Pullback At ETH, after creating a new ATH of over $4,900, the ETH shows that the liquidation cycle forms a price action for ETH each week. At press time, ETH will trade at $4,606, an increase of 2.5% over the past 24 hours.
Featured images from Unsplash, Cryptoquant and TradingView.com charts
