"ETH Liquidity After Shapella: Balancing Unstaking & Institutional Demand
Unstaking Sell Pressure:
~3.5M ETH (18% of staked supply) was unstaked post-Shapella, but only ~1M ETH hit markets—most restaked or moved to custody.
Daily sell pressure peaked at ~50K ETH/day (transient, <0.5% of daily volume).
Institutional Absorption:
Custody solutions (Coinbase, Kraken, Figment) saw ~2.2M ETH inflows, offsetting sell pressure.
ETFs and LSDs (Lido, Rocket Pool) now dominate staking demand, locking supply long-term.
Net Effect:
Circulating supply grew modestly (~0.3% annualized), but institutional demand and restaking (EigenLayer) are tightening liquidity.
ETH’s yield-bearing utility (staking + LSTs) reduces volatility vs. pre-Shapella.
Outlook:
Structural demand (yield, ETFs) likely outweighs sell pressure unless staking APR drops sharply."