More than a quarter of all ethereum is locked up

27% of the total supply of ethereum (ETH) is tied up in staking, according to Coinbase. 

Ethereum’s proof-of-stake consensus mechanism relies on people (dubbed “validators”) to process transactions and maintain the blockchain’s integrity. The validators deposit their own ETH as collateral, giving them a literal stake in keeping the network honest and can be penalized if they misbehave. Validators are rewarded with ETH for committing their crypto to the process.

Notably, it’s expected that the upcoming ethereum ETFs won’t be able to participate in staking due to regulatory concerns.