What Is Staking?

Staking involves locking cryptocurrency in a blockchain network to help validate transactions and earn rewards. In Proof-of-Stake networks like Ethereum, validators must stake tokens as collateral. When whales stake large amounts, it reduces circulating supply and signals long-term confidence in the network. Conversely, large unstaking events can precede sell pressure as tokens become liquid again. Sonar Tracker monitors staking-related whale movements to help traders anticipate supply changes. The staking yield and the amount staked by whales are important on-chain metrics for assessing network health and token value.