Staking introduces a new economic incentive structure. Validators must lock at least 32 ETH to participate solo, though pooling options allow smaller holders to join. Rewards incentivize holding rather than selling, which can stabilize or increase ETH’s value by reducing sell pressure—unlike PoW, where miners often sold ETH to cover operational costs. However, excessive staking (e.g., 60% of staked ETH is reportedly profitable at current prices) could limit liquidity, potentially dampening short-term price volatility but also reducing transactional activity if holders prioritize passive income over DeFi usage. This shift in investor behavior might temper short-term price growth but bolster ETH as a store of value over time.