Ethereum Staking Hits All-Time High: What It Means for ETH Price
2025-06-18
Ethereum has reached a new milestone. The total amount of ETH staked on the network has now surpassed 35 million, marking the highest level ever recorded.
This significant achievement reflects a notable shift in investor behavior, as more participants in the crypto space are opting to lock up their Ether to earn passive income rather than sell it.
As the available liquid supply of ETH shrinks, market analysts are closely watching how this trend might influence Ethereum's price in the near future.
Over 28% of Total Ether Supply Now Staked
According to data from Dune Analytics, over 28.3% of the total Ether supply is now staked, meaning it has been deposited into Ethereum’s proof-of-stake (PoS) mechanism.
This staking process involves locking up ETH in smart contracts in return for regular yield, and it indicates that investors are increasingly willing to hold their assets over the long term.
More than 500,000 ETH was staked in the first two weeks of June alone, further suggesting growing confidence in the Ethereum network.
As Ethereum continues its transition under the PoS model, staking has become a central feature.
The sharp rise in the Ethereum staked supply is not only about generating income but also about reducing the circulating supply of ETH, which can have potential implications for the Ethereum price impact of staking.
Read More: Ethereum Golden Cross Confirmed: Is a $3,000 ETH Price Imminent?
Liquid Supply Shrinks as Holding Sentiment Grows
The surge in staking has led to a noticeable decline in ETH's liquid supply. This means fewer tokens are available for trading on the open market. A decrease in supply, especially if demand holds steady or increases, can create upward pressure on prices.
Although not guaranteed, many in the industry interpret this trend as a bullish signal for the Ethereum market.
Adding to the long-term holding sentiment, addresses known for accumulating ETH without selling have now reached a new record, holding around 22.8 million ETH. This further supports the idea that Ethereum is gaining trust as a long-term investment asset.
Regulatory Clarity Boosts Market Confidence
Part of the reason behind the increase in ETH staking can be traced to a more favorable regulatory outlook in the United States.
At the end of May, the Securities and Exchange Commission (SEC) clarified that protocol staking activities, like those on Ethereum’s PoS network, do not require registration under the Securities Act.
This regulatory statement removed some of the uncertainty that had previously surrounded staking, which encouraged more investors and institutions to participate.
While this is a welcome development for many, the market is still waiting for the SEC to approve Ether staking ETFs. Notably, the SEC has postponed its decision on applications such as Bitwise’s, which proposed integrating staking into its Ether ETF product.
The approval of such products could introduce ETH staking to a broader investor base and add more momentum to the current trend.
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Institutional Staking Dominated by a Few Players
When examining the breakdown of the Ethereum staked supply, it's clear that several major players are involved. Lido, a decentralized liquid staking protocol, is responsible for over 25% of all staked ETH.
Centralized exchanges also play a large role, with Binance and Coinbase holding 7.5% and 7.4% , respectively.
In fact, Coinbase has become the single largest node operator, responsible for over 11.4% of all staked ETH through its validators. While this institutional involvement helps grow staking participation, some critics warn that it could pose a centralization risk to the Ethereum network.
If too much ETH is controlled by a small number of entities, it could potentially undermine the decentralized nature of the blockchain.
Despite these concerns, protocols like Lido have gained traction by simplifying staking for users and institutions alike. According to Lido contributor Konstantin Lomashuk, a significant portion of the platform’s total value already comes from institutional sources.
What Does This Mean for ETH Price?
The Ethereum price impact of staking is still evolving. A reduction in liquid ETH supply, paired with a growing number of long-term holders, may strengthen the price over time, especially if demand continues to rise.
However, short-term price movements are still subject to broader market conditions, including macroeconomic trends and investor sentiment toward risk assets.
That said, the fundamental indicators point to increasing trust in Ethereum’s future. The steady growth of ETH staking suggests that investors are thinking beyond quick profits and focusing more on long-term returns and network participation.
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Frequently Asked Questions (FAQ)
Q: What is ETH staking?
A: ETH staking means you deposit and lock up your Ether (ETH) to become a validator on the Ethereum network. This allows you to help secure the network, participate in its governance, and earn rewards and passive income on your staked ETH.
Q: How much do you earn by staking ETH?
A: The current estimated reward rate for staking Ethereum is 2.04% annually. This means, on average, you can earn about 2.04% on your staked ETH over a year.
Q: Can I lose my ETH if I stake it?
A: No, you cannot lose your ETH if you stake it directly (natively). This is because it's "non-custodial," meaning you keep full control of your private keys. Your crypto remains entirely yours, so there's no risk of it being taken by the validator or operator you stake with.
Q: How much do you get for staking 32 ETH?
A: If you stake 32 ETH (which is enough for one validator), you can expect to earn approximately 1.6 to 2.24 ETH per year, as current annual rewards average around 4-7% but can change with network activity.
Disclaimer: The content of this article does not constitute financial or investment advice.
