@grauce
Ethereum’s staking ratio continues to rise in 2025, raising concerns about liquidity constraints. With a significant portion of ETH locked, circulating supply shrinks, tightening available liquidity. While LSTs alleviate this by providing liquid exposure, excessive staking risks centralization and market inefficiencies. If too much ETH is locked, volatility may rise during demand shocks. Balancing security incentives with liquidity availability will be critical for Ethereum’s economic health. Investors must watch whether staking growth enhances stability—or crosses into over-concentration that weakens ETH’s role as a fluid settlement asset.
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