Roughly 30% of Ethereum (ETH) total supply — about 36.6 million tokens — is now locked in staking contracts, a record high for the network's proof-of-stake system that is pulling tens of billions of dollars out of liquid circulation even as the asset trades below $2,000.

What Happened: Record Staking Level

On-chain analytics data shows that staking participation on Ethereum has reached an all-time high, with approximately 36.6 million ETH committed to validator contracts. The milestone means nearly one-third of all circulating supply is effectively unavailable for trading.

The accumulation appears driven in part by institutional players and large holders.

Entities such as BitMine have been adding to their staked positions, while smaller wallets have also increased participation in pursuit of validator rewards.

Whale behavior on-chain has been mixed, with some larger holders trimming reserves while others are expanding exposure through staking channels — a method that reduces direct selling pressure.

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Why It Matters: Supply Squeeze

The structural shift in ETH supply dynamics carries significant implications for price behavior. With nearly a third of all tokens locked — and validators facing long lead times before they can withdraw — the available float shrinks considerably.

Analysts suggest that this tightening, combined with ongoing whale accumulation, could amplify price swings if market sentiment turns. Reduced liquidity means both rallies and selloffs may move faster.

ETH has traded below key support levels in recent sessions, and analysts point to a combination of technical weakness and macroeconomic headwinds weighing on the broader crypto market. Yet the record staking ratio signals that network participants remain committed to long-term positioning despite near-term price struggles.

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