35.9% of ETH Is Staked: Is Tradable Supply Shrinking?

Ethereum ended the third quarter of 2026 with 43.8 million ETH staked, equivalent to 35.9% of supply, according to Bitwise’s report published on October 20. The figures describe the quarter-end position, not a live measurement on October 23. Source: The Bitwise Staking Report Q4 2026.

That proportion is often interpreted as evidence that less ETH is available for sale. There is a mechanical basis for the argument: ETH securing the network cannot be transferred as immediately as an ordinary wallet balance. Its owners, however, do not necessarily lose the ability to trade their economic exposure.

Liquid staking allows ownership of a staking position to be represented by a transferable token. Withdrawals also remain available through the applicable process. The staking ratio is therefore more useful as a measure of ETH allocation and liquidity constraints than as proof that tokens have permanently disappeared or that prices must rise.

ETH staked at the end of the third quarter of 2026. Source: Bitwise, The Bitwise Staking Report Q4 2026, published October 20, 2026.

Staking Changes How ETH Is Used Without Eliminating It

Staking commits ETH to support proof-of-stake consensus. Validators perform network duties and receive rewards, while certain violations can result in penalties. The basic mechanism is explained in Ethereum’s rewards and penalties documentation.

Staked ETH remains part of the supply. It differs from burned ETH because staking has a withdrawal path. Treating both as equivalent reductions in supply would obscure an important distinction.

The principal change concerns immediate availability. Ordinary wallet ETH can be moved when the transaction is processed. A staking position requires its owner to consider validator exit procedures or the provider’s withdrawal mechanism.

That delay can affect how quickly supply responds to price changes. Its significance depends on who owns the position, whether a representative token exists, and how easily that token can be traded.

The Remaining 64.1% Is Not All Available for Sale

Subtracting 35.9% from 100% leaves 64.1% outside the report’s staking category. That remainder is not the same as inventory available in order books.

Unstaked ETH may sit in long-term holders’ wallets, application contracts, operational reserves, or other uses. Some owners have no intention of selling. Conversely, some exposure to staked ETH remains transferable through representative tokens.

Supply analysis needs to distinguish several layers:

• Total ETH included in the supply measure.

• ETH allocated to staking.

• Tradable assets and claims on ETH.

• Executable buy and sell liquidity at a particular price.

The final layer is closest to the market’s immediate ability to absorb an order. The staking percentage cannot explain it fully without information about liquidity and holder behavior.

Liquid Staking Preserves a Trading Route

A liquid staking token, or LST, represents a claim on staked ETH and rewards under the product’s rules. The token can be sold or transferred while the underlying ETH remains staked. The mechanism is explained in Ethereum’s liquid and pooled staking guide.

Trading and redemption mechanics for liquid staking tokens. Source: ethereum.org, page updated August 17, 2026; checked October 23, 2026.

Consider a hypothetical investor holding an amount of LSTs with a claim value equivalent to 100 ETH. The investor sells the entire position to another buyer for an amount worth 98 ETH before fees.

The underlying ETH remains staked. Ownership of the claim changes, while the seller accepts a 2% discount to claim value in this example. The discount is the liquidity cost of obtaining an exit through trading instead of waiting for redemption.

If the seller receives ETH, the investor has exited the LST position but still has ETH price exposure. Reducing that exposure would require another transaction into the chosen asset.

The representative token does not create an additional matching quantity of ETH. Counting 100 underlying ETH and a claim on those same 100 ETH as 200 ETH of supply would double-count the asset.

Four Factors Determine the Effect on Available Supply

The staking ratio becomes more useful when linked to inflows, exit capacity, and trading conditions. The following factors help test whether staking is actually reducing potential near-term selling pressure.

A. Where New Stake Comes From

Additional staking does not necessarily originate from new purchases. An existing holder can move ETH from a wallet into a validator or staking service.

The transfer changes how the asset is used, but it does not prove fresh spot demand on the same day. Establishing a purchase requires transaction and funding evidence that can be connected to the additional position.

B. Exit Queues and Withdrawal Procedures

Owners can leave staking, but the process follows protocol rules and prevailing queue conditions. Ethereum’s documentation also explains that service users follow their provider’s mechanism rather than assuming direct access to the underlying validator. Source: Ethereum’s staking withdrawal guide.

A queue can delay availability without removing the owner’s economic claim. An exit request also does not necessarily become a sale: holders may change operators, alter validator arrangements, or move assets while retaining ETH exposure.

C. Trading Depth for Representative Tokens

LST holders can obtain liquidity through trading, but execution depends on available demand. Liquidity adequate for a small order may be insufficient for a large sale.

Selling pressure can appear as an LST discount before it appears as a validator withdrawal. A stable staking balance therefore does not establish that all position owners are choosing to maintain their exposure.

D. Spot Demand and Hedging Positions

Less immediately transferable supply is only one side of price formation. If buying demand weakens, a high staking ratio alone cannot support the price.

Owners may also manage price exposure through derivatives without withdrawing their staked ETH. The amount staked does not reveal whether holders retain their full price risk or hedge it elsewhere.

Staking Rewards Do Not Guarantee a Rupiah Return

Rewards are paid in ETH, so the rupiah outcome still depends on ETH’s price and the exchange rate. A larger token balance does not guarantee that the portfolio is worth more in the investor’s spending currency.

Protocol rewards are variable as well. The amount of active stake affects per-unit reward calculations, while validator performance and other revenue components influence actual results. Service fees must be deducted according to the product’s terms rather than assumed to be included in every published rate.

Custodial-service users should examine who controls the withdrawal credentials, which determine where withdrawn funds can go. Dependence on a provider differs from controlling a validator directly. These models are discussed in Ethereum’s staking-as-a-service guide.

What the Staking Ratio Cannot Explain About ETH’s Price

The ratio does not reveal holders’ acquisition costs, cash needs, or willingness to accept a discount when selling a claim. It also does not show how much new buying demand is available to absorb sell orders.

For Indonesian investors, a fuller assessment combines staking data with price, volume, spreads, and executable depth. The ETH/USDT market on MEXC provides a venue-specific view, not a measurement of all global ETH liquidity or the liquidity of every LST.

Additional risks can arise from contracts, operators, and product governance. Staking’s contribution to Ethereum’s security does not guarantee the safety of every service marketed as staking.

Evidence That Would Strengthen or Weaken the Tight-Supply Argument

The claim that available supply is becoming constrained is more convincing when several indicators agree:

• Stake increases without substantial pressure on redemption routes.

• LST liquidity remains adequate and discounts do not widen.

• Spot demand persists rather than growth being confined to leveraged positions.

• Markets absorb selling without a sustained deterioration in depth.

• Data sources use comparable dates and definitions.

Conversely, rising exit demand, widening LST discounts, or weaker spot buying can undermine that argument even while the staking ratio remains elevated.

The 35.9% figure describes how much ETH was allocated to staking at the end of the third quarter. A conclusion about tradable scarcity requires additional evidence about holders’ exit routes and buyers’ capacity to absorb supply.

Disclaimer: This article provides general information and analysis, not a recommendation to buy ETH or use a staking product. Staking, LSTs, and custodial services carry price, liquidity, penalty, contract, and counterparty risks. The transaction example is hypothetical and is not a product quotation.