Ethereum Staking Hits Historic Milestone

The Ethereum network has achieved a significant milestone with 【35 million ETH】 now locked in staking contracts, representing over 28% of its total circulating supply. This record high, reported by Dune Analytics on June 17, coincides with a notable reduction in liquid ETH availability as more investors commit to long-term positions.

Institutional Confidence Grows

Data reveals approximately 500,000 ETH were staked in June's first half alone, signaling strong investor conviction. CryptoQuant analysts note accumulation addresses—wallets with no sell history—now hold an all-time high of 22.8 million ETH. ——This suggests Ethereum remains a preferred asset for institutional investors—— despite recent market volatility.

Regulatory Tailwinds Emerge

The staking surge follows the SEC's May 29 clarification that protocol-level staking doesn't constitute securities offerings. While Ether staking ETF approvals remain pending, the regulatory guidance has removed significant uncertainty for institutional participants. Notably, the SEC delayed its decision on Bitwise's staking ETF proposal just weeks before issuing the new framework.

Lido Dominates Staking Landscape

Liquid staking protocol Lido commands 【25%】 of all staked ETH, with centralized exchanges Binance (7.5%) and Coinbase (7.4%) following closely. This concentration has sparked decentralization concerns, though Lido representatives emphasize institutional demand drives their growth. ——Our technology meets compliance requirements traditional finance demands—— stated a Lido founding contributor.

Market Implications

The staking boom creates a supply squeeze, with 【3.4%】 of ETH's total supply becoming illiquid monthly. Analysts suggest this reduction in circulating supply could exert upward price pressure, particularly when combined with potential ETF approvals. However, critics warn excessive staking through few providers may introduce systemic risks to Ethereum's network security.

Future Outlook

Industry observers anticipate staking participation could reach 40% of ETH supply by 2026 if current trends persist. The network's transition to proof-of-stake continues reshaping its economic model, with staking rewards now constituting a growing portion of investor returns. As regulatory clarity improves, institutional staking through compliant channels appears poised for accelerated growth.