Ethereum's liquid supply is diminishing as more than 40% of ETH is locked in various financial instruments, according to Coinotag. On-chain data reveals that 29.5% of Ethereum is staked, 7.3% is held in exchange-traded funds (ETFs), and 3.4% is in decentralized autonomous treasuries (DATs). This significant locking of ETH reduces the tradable float, potentially increasing the cryptocurrency's price sensitivity to market demand.