@haleykelsen
Elevated staking reduces immediately liquid ETH supply, tightening available float and potentially elevating price sensitivity to flows. That can increase volatility on large liquidation or sell events but may also stabilize price by removing short-term sellers. Liquid-staking derivatives reintroduce synthetic liquidity, mitigating some tightness. Overall, effects depend on the balance between illiquid stake concentration and the scale of derivative liquidity.
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