Ethereum (ETH) Staked ETH Supply Nears All-Time High Ahead of Spot ETF Approval

The total number of staked ETH has continued to increase and sits near its all-time high as it stands at 33.3 million ETH or 27.7% of the total supply.

The total amount of staked ETH in the market has reached an all-time high, highlighting the increasing liquidity of Ether (ETH) in the cryptocurrency market.

According to on-chain data, the total staked ETH currently stands at 33.3 million ETH, which constitutes around 27.7% of the total ETH supply. This indicates a significant portion of ETH is being locked up for staking purposes.

The increasing supply of ETH, on the other hand, suggests that ETH has once again become an inflationary asset, impacting its ability to serve as a store of value. Staking ETH involves locking it up for a specific period, contributing to reducing the circulating supply and potentially rendering ETH more deflationary.

CryptoQuant's Head of Research Julio Moreno noted the increasing ETH supply in a recent analysis, highlighting that the total ETH supply has attained its highest level since December 11, 2023.

“The total supply is at its highest level since December 11, 2023. But the narrative of ultra-sound money has ended. ETH supply is growing again, although slowly,” wrote Moreno.

ETH Liquidity in Perspective

Moreno's analysis also includes observations on the spot trading volume data, indicating that ETH might be approaching a level of liquidity comparable to Bitcoin (BTC).

Specifically, ETH spot trading volume has varied between 80% and 90% of BTC spot trading volume in recent weeks. This suggests a substantial level of liquidity for ETH in the market.

Furthermore, data from CoinMetrics reveals that about 12% of ETH's total supply is utilized in smart contracts or bridges connecting different blockchains.

When considering tokens that are staked, around 40% of Ether's cryptocurrency supply is categorized as “locked” and not actively engaged in trading activities.

The approval of the spot Ethereum ETF is a key focus for the cryptocurrency community. Following the footsteps of Bitcoin, the approval of the spot ETF for Ethereum is anticipated to attract fresh capital into the market, potentially propelling ETH to new all-time highs.

Analysts predict that billions of dollars will flow into Ethereum ETFs within months of their approval. Notably, Tron founder Justin Sun has made a substantial accumulation of ETH, acquiring over $1.1 billion worth of ETH in recent months.

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