ETH Staking Hits Record 32% as Exchange Reserves Collapse

Ethereum staking has reached a new record high of 32%, according to recent data. This means that approximately 32% of the total Ethereum supply is now locked in validators, up from near zero in early 2021.

The proportion of Ethereum held on exchanges has fallen significantly, dropping from around 33 million ETH in 2021 to about 14.9 million today. This decline represents a drop of more than half and indicates that investors are shifting their coins into staking rather than holding them on trading venues.

Persistent negative netflows further reinforce this trend, showing that more Ethereum is leaving exchanges than entering them. One analyst notes that the record staking rate builds a genuine supply floor but warns that prices held up by derivatives leverage can unwind quickly, exposing the market to potential volatility.