BlockBeats News, May 19th, despite a roughly 26% year-to-date drop in ETH price, the Ethereum staking ratio has increased from 29% at the beginning of the year to around 31%, indicating that long-term holders are disregarding price weakness and on-chain risks, continuously reducing the circulating supply.

Historical data shows that in a context of tightening supply, once demand sees a substantial recovery, it will provide favorable support for the price. Meanwhile, liquidity staking protocols like Lido have significantly lowered the entry barriers, expanding the staking participants from professional validators to a broader range of retail and institutional users.

Analysis points out that as spot ETF products mature and the scale of RWA tokenization activities on Ethereum expands, institutional demand for staked ETH could bring structural inflows into the staking ecosystem. Despite ETH's poor price performance, Ethereum's core position in RWA settlement, DeFi infrastructure, and Layer 2 activities remains strong. Whether the price can reverse will depend on the speed of institutional capital shifting from narratives to actual allocations.