Staked Ethereum Reaches Record High Amid Decreasing Liquid Supply
The staked supply of Ethereum (ETH) has reached a historic peak of 35 million ETH, reflecting heightened investor confidence and a tightening liquid supply. As the second-largest cryptocurrency by market capitalization, Ethereum’s staking milestone underscores its growing prominence in the blockchain ecosystem.
Investor Confidence and Long-Term Holding
More than 28% of Ethereum’s total supply is now staked, locking these assets in smart contracts to generate passive rewards. This trend signals a strategic preference among investors for long-term holding rather than short-term trading. June alone saw over 500,000 ETH staked, demonstrating accelerating participation.
Regulatory Clarity Boosts Staking Activities
The U.S. Securities and Exchange Commission (SEC) recently provided crucial guidance, clarifying that certain staking activities don’t require securities registration. This regulatory clarity has encouraged broader participation in Ethereum staking, contributing to the record supply of staked ETH.
Market Leadership and Institutional Growth
Lido dominates the staking market with 25% of staked ETH, while Binance and Coinbase hold 7.5% and 7.4% respectively. Despite concerns about centralization, institutional adoption continues rising. Konstantin Lomashuk, a Lido founding contributor, notes increasing institutional interest, with significant portions of Lido’s total value locked coming from professional investors.
Future Outlook
With Ethereum’s ecosystem evolving, the combination of growing staking activity and regulatory progress creates a strong foundation for future development. Market participants now await the SEC’s decision on Ethereum staking ETFs, which could further transform the staking landscape.
