People Are Staking More ETH! Is This a Good Sign?
2025-06-11
Ethereum has once again captured the spotlight due to a rising wave of staking activity. As of early June 2025, more than 34.8 million ETH is staked on the Ethereum network, representing approximately 28% of its circulating supply.
This marks a new all-time high and reflects a deeper trend within the ecosystem: growing confidence among long-term holders and increasing interest from institutional investors.
But what does this surge in Ethereum staking mean for the future of ETH? Is it a bullish signal, or should retail investors approach with caution? Find out in this article!
What Is ETH Staking and Why It Matters
Staking is a core component of Ethereum’s proof-of-stake (PoS) system. By locking up ETH to support the network’s operations, validators help process transactions and maintain security. In return, they receive staking rewards, making it an attractive passive income opportunity for both individuals and institutions.
Unlike speculative trading, staking often signals long-term commitment. When large amounts of ETH are staked, it suggests that investors are confident in the network’s future and willing to hold rather than sell.
This dynamic can reduce circulating supply, supporting price stability or growth in bullish conditions.
Record High: 34.8 Million ETH Now Staked
According to data from Dune Analytics, Ethereum staking reached a record high of 34.8 million ETH staked as of June 8, 2025. This surpasses the previous peak recorded in November 2024 and reflects a steady upward trend in recent weeks.
Interestingly, staking levels had remained relatively flat for much of the past year, hovering just above the 33 million mark. The recent rise signals renewed interest, likely fueled by both price momentum and regulatory optimism.
The total staked ETH now accounts for more than 28% of Ethereum’s circulating supply—a significant milestone that could affect everything from liquidity to long-term price movement.
Spot ETH Staking ETFs: A New Catalyst?
A major reason behind the increased staking activity could be the anticipation of spot Ethereum ETFs that include staking features.
The U.S. Securities and Exchange Commission (SEC) is expected to approve these new financial products in the coming weeks, paving the way for wider institutional adoption.
ETF issuer REX Shares has already filed a version that incorporates staking, using legal pathways to navigate regulatory complexities. Meanwhile, BlackRock’s iShares Ethereum Trust (ETHA) has continued accumulating ETH, marking 23 consecutive trading days without a single outflow.
If approved, these ETFs could offer institutions a simple and regulated way to earn yield on ETH—further boosting demand and potentially strengthening Ethereum’s position as a yield-generating digital asset.
Read more about Ethereum (ETH):
ETH to USD: Convert Ethereum to US Dollar
Ethereum (ETH), Market Cap, Price Today & Chart History
Market Reaction: ETH Heads Toward $2,800
Ethereum’s price is already reacting to the surge in staking sentiment. ETH has risen more than 8% in the past 24 hours, reaching $2,768 at the time of writing.
Technical indicators also point to continued bullishness:
- The Relative Strength Index (RSI) is rising, currently at 65.39, just below the overbought threshold.
- On-Balance Volume (OBV) shows increased buying pressure.
- ETH is forming higher lows, indicating a solid upward trend.
If this momentum holds, ETH could test the $2,800 resistance level in the short term. A successful breakout may open the door for a move toward $2,900 or higher.
However, traders should remain cautious if RSI crosses into overbought territory, as short-term pullbacks could follow.
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Frequently Asked Questions (FAQ)
Q: Is ETH staking worth it?
A: Yes, ETH staking is generally worth it. The main benefit is earning more crypto, with interest rates sometimes exceeding 10% or 20% per year, making it a potentially profitable investment if you hold crypto that uses the proof-of-stake model.
Q: How much does ETH staking pay?
A: The current estimated reward rate for staking Ethereum is 2.01% per year.
Q: Can I lose my ETH if I stake it?
A: No, you cannot lose your ETH if you natively stake it. Since it's non-custodial, you keep control of your private keys, meaning the crypto remains in your full ownership and cannot be taken by the validator or operator.
Q: How many ETH do I need to stake?
A: You need 32 ETH to become a validator for home staking or using staking-as-a-service. This amount is deposited into the staking contract.
Q: Is staking ETH taxable?
A: Yes, your Ethereum staking rewards are subject to income tax as soon as you receive them, even if you don't sell them. They are also subject to capital gains tax if you later sell them.
Disclaimer: The content of this article does not constitute financial or investment advice.
