Staked ETH hits 31% of supply as onchain conviction diverges sharply from price

The share of Ethereum staked on-chain has climbed to roughly 31% of total supply, up from 29% at the start of the year — a steady accumulation that has continued largely independent of price. ETH is down approximately 26% year-to-date, creating a notable divergence between network fundamentals and market performance.

The widening gap raises a pointed question: is the market discounting a buildout that is still in early innings? Long-term holders are clearly maintaining conviction, gradually compressing the liquid circulating supply even as price underperforms. Liquid staking protocols like Lido have broadened participation well beyond technically sophisticated validators, pulling in retail and institutional holders who no longer need to sacrifice liquidity to stake.

Institutional dynamics add another layer. As spot ETH ETF products mature and tokenization activity scales, demand for…