A rising staking ratio does not mean stronger buying demand. That is my core takeaway from this set of ETH data. It holds only if we distinguish between the amount already staked and daily new inflows, rather than treating the former as a direct signal of demand.
According to a PANews report citing CryptoQuant analyst PelinayPA, the price of ETH fell from around $2,800 in October to $2,132, while the ETH 2.0 staking ratio has risen by about 4.32% since May, with roughly 36.32% of the total supply currently staked. The same report also notes that total staking inflows have declined by 40.11%. In my view, these figures are not contradictory: the staking ratio reflects the existing share of supply, while falling inflows reflect a slowdown in marginal additions. The share already staked can keep rising even as new inflows slow. There is insufficient evidence to interpret 36.32% directly as “stronger investor confidence.”
Mechanically, staking does reduce the amount of ETH freely available to trade, but the report explicitly notes that staked ETH is not permanently locked and that validators can initiate withdrawals. This suggests that a supply squeeze is better understood as a conditional factor, not a conclusion in itself: it may support prices only if spot demand is strong enough to absorb potential selling pressure. If willingness to withdraw increases or demand is insufficient, the same mechanism could work in the opposite direction.
There are three indicators to monitor: whether the staking ratio continues to rise, whether daily staking inflows can stop falling, and whether the validator withdrawal queue grows. The observation window should cover both scenarios of continued price weakness and stabilization. This analysis is based on an analyst’s view reported by a single media outlet. The source material for this report does not include withdrawal data, so the claims cannot be considered verified. This article does not constitute investment advice.
$ETH
#ETH #Crypto Market
Source:
PANews (originally published 11-10 08:29 Beijing time)
https://www.panewslab.com/zh/articles/01a1c2dc-73f2-747e-a8e1-83629ebad040
According to a PANews report citing CryptoQuant analyst PelinayPA, the price of ETH fell from around $2,800 in October to $2,132, while the ETH 2.0 staking ratio has risen by about 4.32% since May, with roughly 36.32% of the total supply currently staked. The same report also notes that total staking inflows have declined by 40.11%. In my view, these figures are not contradictory: the staking ratio reflects the existing share of supply, while falling inflows reflect a slowdown in marginal additions. The share already staked can keep rising even as new inflows slow. There is insufficient evidence to interpret 36.32% directly as “stronger investor confidence.”
Mechanically, staking does reduce the amount of ETH freely available to trade, but the report explicitly notes that staked ETH is not permanently locked and that validators can initiate withdrawals. This suggests that a supply squeeze is better understood as a conditional factor, not a conclusion in itself: it may support prices only if spot demand is strong enough to absorb potential selling pressure. If willingness to withdraw increases or demand is insufficient, the same mechanism could work in the opposite direction.
There are three indicators to monitor: whether the staking ratio continues to rise, whether daily staking inflows can stop falling, and whether the validator withdrawal queue grows. The observation window should cover both scenarios of continued price weakness and stabilization. This analysis is based on an analyst’s view reported by a single media outlet. The source material for this report does not include withdrawal data, so the claims cannot be considered verified. This article does not constitute investment advice.
$ETH
#ETH #Crypto Market
Source:
PANews (originally published 11-10 08:29 Beijing time)
https://www.panewslab.com/zh/articles/01a1c2dc-73f2-747e-a8e1-83629ebad040
