Solana’s staking surge tightens supply, boosting SOL vs ETH momentum
Solana’s staking ratio has reached an all-time high of about 70%, locking roughly $60 billion worth of SOL and leaving nearly 400 million SOL effectively out of circulation. Ethereum’s staking ratio also hit a record near 30%, with about $120 billion worth of ETH staked, but the proportion of ETH staked (around 37 million ETH) is far smaller compared with Solana’s staked supply. The article highlights that Solana’s higher staking share tightens circulating supply more dramatically, creating a stronger supply squeeze that can amplify price moves. Recent on-chain flows show Solana has attracted more than 50% of bridged capital from Ethereum, around $50 million in the past seven days, and the SOL/ETH price ratio has risen ~2.13%, underscoring SOL’s recent technical outperformance. Key takeaways for traders: sharply higher SOL staking reduces available supply and may increase upside sensitivity to demand; continued capital inflows and rising SOL/ETH ratio signal growing network momentum; monitor staking trends, bridge flows and SOL/ETH relative strength for trade setups and risk management.
Bullish
The news is bullish for SOL and constructive for L1s generally. A 70% staking ratio on Solana meaningfully lowers its circulating supply, creating a tighter supply-demand dynamic that tends to amplify price moves when demand rises. Historical analogues include periods when large portions of a token became locked (via staking or protocol locks), after which reduced free float contributed to stronger rallies on renewed demand. The reported $50m of bridged capital into Solana over seven days and a rising SOL/ETH ratio (+2.13%) are short-term confirmations of demand shifting toward SOL, supporting momentum trades. In the short term, traders may see increased volatility but a positive bias for SOL — watch on-chain inflows, staking changes (which can reverse), bridge activity, and SOL/ETH relative strength for entry/exit signals. In the long term, persistently high staking can sustain tighter effective supply and improve upside potential, though risks remain: staking rewards, unstaking windows, network outages, or sudden de-risking events could reintroduce supply and cause rapid sell pressure. Therefore, bullish bias should be paired with risk controls (stop losses, position sizing) and monitoring of on-chain metrics for changes.