On-chain NFT staking mechanisms can distort price discovery. Staking often locks NFTs, reducing market liquidity and limiting active trading, which hinders accurate price signals. Speculative staking driven by yield incentives may inflate perceived value, detaching prices from intrinsic worth. Additionally, staking rewards can create artificial demand, masking true market sentiment. However, well-designed mechanisms with balanced incentives and flexible lock-up periods can mitigate these risks, fostering healthier price discovery. The impact depends on the staking model and market dynamics. (82 words)