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Ethereum staking surges by 1.4M ETH – What happens to liquidity now?
['Ritika Gupta', 'Written By', 'Reviewed By', 'Ishika Kumari', 'Muriuki Lazaro', 'Kelvin Murithi', 'Olayiwola Dolapo']
AMBCrypto
Could investors staking more Ethereum be tightening market liquidity?
As the chart below shows, Ethereum’s total staked supply has climbed to a new all-time high of 41.4 million ETH, representing roughly 34% of the total ETH supply.
Tom Lee’s BitMine, for instance, staked another 150,120 ETH (around $278 million), bringing its total staked holdings to 5.07 million ETH worth roughly $9.38 billion, about 87.4% of its total ETH holdings.
If Ethereum [ETH] continues moving into staking at this pace, could shrinking liquid supply start tightening liquidity across the crypto market?
The message is clear: Crypto market liquidity continues to dry up.