Ethereum staking ratio rises to 31% despite price decline

Huoxing Finance reports that on May 19, despite Ethereum’s price declining approximately 26% year-to-date, the Ethereum staking ratio has risen from 29% at the beginning of the year to around 31%, indicating that long-term holders are continuing to reduce circulating supply, disregarding price weakness and on-chain risks. Historical data shows that when circulating supply contracts, a meaningful rebound in demand can provide strong price support. Meanwhile, liquid staking protocols such as Lido have significantly lowered participation barriers, expanding the staking base from professional validators to a broader range of retail and institutional users. Analysis suggests that as spot ETF products mature and the scale of RWA tokenization activity on Ethereum grows, institutional demand for staked ETH could drive structural capital inflows into the staking ecosystem. Although ETH’s price performance has been weak, Ethereum’s central role in RWA settlement, DeFi infrastructure, and Layer 2 activity continues to strengthen; whether the price reverses may depend on how quickly institutional capital shifts from narrative to actual allocation.