What’s Next for Ethereum? Expert Offers Insight as ETH Staking Reaches New Peak at 35M

Ethereum (ETH) staking recently hit a new record with investors locking over 35 million ETH. As per reports, this level implies that approximately 28% of the total circulating supply of Ethereum is now locked. This historic level indicates a significant change in market sentiment with investors keen on the long-term value over short-term gains

The strong Ethereum staking also comes as a surprise as Ethereum has been struggling recently. This begs answers to what’s next for Ethereum following the surge in staking. Dom Harz, the Co-Founder of BOB – a hybrid Layer-2 combining the security of Bitcoin with Ethereum’s DeFi innovation and versatility, sheds some light in a recent commentary!

ETH Hits New Staking Peak Signaling Growing Confidence

According to analysis by pseudonymous analyst OnChainSchool, data by CryptoQuant shows that there’s a total of 35 million ETH locked. This pushes Ethereum’s staking to a new all-time high with the total staked coins valued at roughly $89.1 billion. The amount also accounts for more than 28% of all the total Ethereum market capitalization which sits at $304.77B.

Ethereum Hits ATH in Staking – 35M ETH Locked | Source: OnChainSchoolThe increase in ETH staking activity comes at a time when market participants are trading cautiously. This depicts an increase in confidence amongst long-term holders. Commenting on the trend, BOB’s Co-founder Dom Harz, highlighted the change in investor mindset

“The total supply of ETH staked reached an all-time high this week, with more than 35 million ETH, around 28% of the total supply, now locked up. With ETH consolidating above $2.4K, up from a low of $1.4K in April, investor confidence is clearly returning, as many choose to stake rather than sell,” Dom noted

The co-founder of BOB also believes that the spike in Ethereum staking could also be linked to a more general change in capital allocation habits in crypto. With staking now as the go-to option of ETH holders, it implies a limited range of promising options to earn a yield on Ethereum. As per Dom, this points to a possible point of saturation

“This level of ETH locked in staking protocols suggests increasing market saturation, with fewer interesting opportunities for holders to put their ETH to work. Meanwhile, Bitcoin is consolidating above $104K, still sitting on vast, untapped liquidity. The real opportunity lies in the convergence of these two ecosystems — connecting Bitcoin’s capital with Ethereum’s DeFi infrastructure to unlock the next wave of yield and innovation,” he wrote

ETH/BTC Ratio Spells Trouble for Ethereum; Altseason Delays

Although the fundamentals are incredibly strong, Ethereum is in a make-or-break moment as per the ETH/BTC ratio. With the ratio currently at 0.024, it is stuck between 0.023 and 0.026, as per data on TradingView. This is indicative of a lack of strong investor interest towards Ethereum

ETH/BTC Ratio | Source: TradingViewThe ratio usually measures the strength of Ethereum against Bitcoin and it frequently serves as a leading indicator of altseason. As it stands, though, the ratio signals that traders are moving into BTC, especially during times of geopolitical uncertainty in the Middle East

In a recent post, crypto analyst Crypto Fella highlighted the importance of this ratio, stating that this is the most essential chart to watch by any person who is expecting altseason to return. He noted that similar sideways movements in 2019 and 2020 eventually led to strong rebounds. But still, he warned that “we need to see some strength before we can see the big reversal.”

For now, Ethereum’s performance suggests patience despite underlying metrics like a surge in staking showing that investors are quietly building for the long-term. As ETH’s liquid supply continues to shrink, Ethereum could be gearing up for a powerful next chapter