According to Beaconcha.in, as of July 10, over 21 million ETH (20% of the total supply), have been staked. This is a significant milestone, considering the recent Shapella update, which allows for withdrawal of staked coins.
Interestingly, despite the option to withdraw, the total circulating amount of ETH has declined as more people show interest in staking. This has led to an increase in the number of validators, which has now exceeded 650,000. However, data from Dune reveals that around 60% of these addresses that have staked ETH are currently running at a loss.
The negative balance situation is determined by comparing the current ETH price with the rate at which it was staked. While such on-chain analytics does not account for the purchase rate of ETH on centralised exchanges, it does reflect the general market trend accurately.
Currently, Ethereum is priced at around $1880, which is a critical point considering that approximately 8 million ETH was staked within the $1800 to $2000 price range. With this in mind, there is a possibility that an increase in ETH price could trigger a wave of stakers withdrawing and selling their ETH for a modest profit.
In spite of that, it is important to observe the deflationary aspect of Ethereum. With the transition to a Proof-of-Stake consensus mechanism and implementation of EIP-1559, a portion of transaction fees is burned, reducing the total supply of Ethereum. So far, according to UltraSound Money, the total supply of Ethereum has shrunk by 290,000 coins. The rate of burning depends on network fees, which in turn hinge on user activity. During a bull run, it is anticipated that the supply of ETH will decrease even faster.