NewsNovo
Roughly a third of all Ethereum in existence is currently locked in staking contracts, according to a report from Investing.com, a threshold analysts say meaningfully tightens the float available to trade.
The development has renewed the so-called supply shock thesis — the argument that reducing circulating $ETH puts upward pressure on price as demand competes for a smaller pool.
What Staking Actually Does to Supply When holders stake Ethereum, they deposit it into the network's consensus layer, where it earns yield in exchange for validating transactions.
The key point the supply shock argument hinges on is that staked ETH is not freely tradeable — it cannot be sold without first going through an unstaking queue.
Keep reading