Ethereum Staking Rate Climbs to 30.5% Signaling Strong Long-Term Conviction

Key Insights:

• Ethereum’s staking rate climbs to 30.5%, showcasing increasing long-term confidence in the network.
• Staking reduces ETH supply, potentially leading to price growth when demand returns.
• Historical trends suggest price increases follow staking rate rises, indicating possible future gains.

Ethereum staking rate has hit a new all-time high of 30.5%, signaling a shift in the market’s long-term sentiment. With ETH currently trading around $2,055, this significant rise in staking showcases growing conviction among long-term holders. Despite price fluctuations and market uncertainty, more Ethereum is being locked up than ever before, which could suggest potential future growth.

Staking Rate and Price Relationship

The rise in Ethereum’s staking rate has come at a time when the price remains relatively flat. The staking rate, which measures the percentage of Ethereum locked in staking contracts, has steadily climbed from 15% to over 30% since early 2023. 

“The people with the most skin in the game are telling you something very different from what the price chart shows,” said Leon Waidmann, pointing out the diverging trend between price movements and staking behavior.

Historically, when the staking rate has risen while the price remained stagnant or declined, it has been followed by significant price increases. This pattern occurred in mid-2023 when the token’s staking rate surpassed 22%, and ETH price moved from $1,800 to over $4,000 in a few months. 

Similarly, early 2025 saw the staking rate break 28%, and within months, ETH surged to above $4,500. Waidmann emphasized that “the divergence always closes,” suggesting a similar outcome could follow in the current market.

Meaning of Ethereum Staking Rate

A rising staking rate removes the token from the open market, reducing its available supply. As more ETH is locked up in staking, it becomes less accessible to traders and speculators. This leads to a tightening of supply, which could potentially lead to upward price movement when demand returns. The fact that Ethereum stakers are not selling their assets despite market fluctuations shows a strong commitment to the network’s long-term potential.

Moreover, staking also reflects growing confidence in Ethereum’s future. The rise in staking is largely driven by validators and users who believe in the network’s long-term growth. This pattern is becoming more evident as ETH holders continue to lock up their coins, signaling their commitment to Ethereum’s continued success.

As Ethereum staking rate continues to climb, market observers will be watching closely for a potential price shift, which has often followed a similar pattern in the past. The removal of liquidity and the strong conviction of long-term holders could suggest a new upward trend in the asset’s price.