Layer 1 competition has never been so intense.
But unlike previous rallies, which were largely “hype-driven,” where any small L1 news could trigger a short-term spike, this cycle feels different. Now the battle is at its core: what really attracts capital.
Naturally, Ethereum [ETH] is right in the mix. On-chain, things look solid: stakes just reached an all-time high with around 36 million ETH locked up (about 30% of the total supply), and the validator queue stands at 2.4 million ETH.
Source: ValidatorQueue
In short, long-term trust in the network appears to be growing.
To back it up it has about 140,000 ETH left the stock exchangescausing Ethereum’s foreign exchange reserves to drop to 16.44 million. When you add it all up, it suggests that a potential supply shock is quietly building underneath.
The impact is reflected in price action, with ETH rising 7%. But zoom out: Ethereum isn’t the only chain hitting records, which raises an important question: could a pullback in ETH.D undermine the impact of all that betting?
Ethereum Staking Hits ATH, But Dominance Can Be Tested
Ethereum’s recent staking milestone does not yet send a clear bullish signal.
Looking at other L1s, many are breaking new records. For example, the value of tokenized RWA is enabled Solana [SOL] has surpassed $1 billion for the first time, hitting an all-time high and strengthening the long run capital flows.
In the meantime, Money [XMR] reached $800 per coin for the first time, posting a 28% weekly rally and pushing the market cap to $15 billion. All of this is happening especially while Ethereum’s dominance is showing a volatile setup.
Source: TradingView (ETH.D)
From a chart perspective, ETH.D is now approaching key resistance.
As the chart above shows, the index has been swinging sideways between 12% and 13% for eight weeks. A breakout above 13% would be significant as Ethereum has not tested that level since late Q3 2025.
However, increasing L1 competition is a factor.
ETH’s betting record alone doesn’t give it a clear advantage, especially as rivals see similar activity. In fact, Solana leads the way so far in 2026 with a 16% gain, making ETH.D the key metric to watch for Ethereum’s breakout.
Final thoughts
- With 36 million ETH locked up and longer-term confidence growing, declining foreign exchange reserves pose a potential supply shock.
- Solana’s strong start to 2026 and ETH.D’s sideways action highlight that Ethereum’s milestone alone does not guarantee a breakout.