A key on-chain metric for Ethereum is revealing a growing divide between long-term stakers and the broader market. Since July 20, the Market Value to Realized Value (MVRV) ratio for staked ETH has pulled away from the MVRV of its total circulating supply. According to analysis from CryptoQuant, this expanding gap indicates that stakers are accumulating higher unrealized profits, a sign of structural strength in Ethereum’s current market cycle.

Divergence Highlights Growing Staker Profitability

Before this trend began, both staked and circulating ETH shared an MVRV ratio of 1.5, which translated to an average unrealized profit of 50% for both groups. While the MVRV for the general circulating supply has held steady at that 1.5 level, the ratio for staked ETH has since climbed to approximately 1.7.

This notable shift means there is now a 20% difference in the cumulative unrealized profit between the two cohorts. The data suggests that long-term participants who have staked their ETH are becoming significantly more profitable and confident in their positions compared to holders of more liquid tokens.

Staking Volume and Burn Mechanism Bolster Outlook

The growing confidence among stakers is reinforced by the sheer volume of ETH being locked away. The current staking base holds over 36.1 million ETH, a substantial amount that reduces the readily available supply on the market and contributes to long-term resilience.

This trend works in tandem with Ethereum’s burn mechanism, which continuously removes a portion of transaction fees from circulation. The combination of a large and growing staked supply and a consistent burn rate helps balance new issuance, supporting a deflationary trend for the asset over time.

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