Stakers willingly lock capital for 6-12 months or longer to earn rewards. The decision to stake during a price decline shows belief in Ethereum's protocol. But it also means less liquid supply available to absorb forced selling.
Ethereum staking yields currently hover around 3-4% annually depending on protocol participation. For long-term holders, locking capital offers real income regardless of short-term price movements.
When over a third of ETH is locked, the remaining supply becomes thinner. Price can move sharply with less trading volume if panic selling occurs, since fewer coins are available on spot markets.
If the record 34.4% stake represents peak commitment and withdrawal accelerates, it signals loss of conviction. Watching weekly staking withdrawal data will tell traders whether the base is weakening or holding firm.
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