Ethereum’s on-chain data is showing a clear behavioral shift among holders. While ETH price remains range-bound, a growing share of the circulating supply is being removed from exchanges and locked into staking, signaling long-term confidence rather than short-term speculation.
ETH Exchange Balances Continue to Decline
Over the past six months, Ether held on centralized exchanges has fallen sharply, dropping from over 12.3 million ETH to around 8.15 million ETH. This steady decline comes despite the asset trading sideways, suggesting investors are choosing illiquidity over immediate selling pressure.
In an X post on Tuesday, Santiment said;
Analysts note that during periods of muted price movement, holders often seek yield, making staking an attractive alternative to trading. As a result, exchange reserves continue to shrink, reducing readily available supply.
Validator Entry Queue Reaches Record Levels
Ethereum’s validator entry queue is currently congested, with approximately 3.6 million ETH waiting to be staked. At current throughput limits, new validators face an estimated 63-day waiting period before activation.
In contrast, exit demand remains low, with less than 50,000 ETH queued for withdrawal, reinforcing the view that staking participation is driven by conviction, not liquidity needs.
More than 36 million ETH roughly 29% of total supply — is now staked, up from about 35 million earlier this year. Large treasury holders have continued increasing their staked positions, with some entities committing over 60% of their holdings to network validation.
With exchange supply tightening and staking absorbing new demand, Ethereum’s circulating liquidity is steadily decreasing. If this trend persists, future price volatility may intensify once demand accelerates, as fewer tokens remain available for trading.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.