Ethereum Staking Hits Record 32% Amid Exchange Reserve Collapse

Ethereum's staking ratio has reached an all-time high near 32%, with more than half of its supply locked in validators. This milestone marks a significant shift in investor behavior, as holders move coins from exchanges into staking, reducing available liquidity and tightening the market.

The proportion of staked supply has grown steadily since early 2021, when it was nearly zero. Today's record high reflects a deliberate choice by investors to stake their Ethereum holdings, rather than selling them on exchanges.

This trend is reinforced by persistent negative netflows, which show more Ethereum leaving exchanges than entering them. As a result, exchange reserves have dropped from above 33 million ETH in 2021 to approximately 14.9 million today, a decline of over half.