Remarkable: Staked Ethereum Hits 35M ETH High as Liquid Supply Declines
The world of cryptocurrency is constantly evolving, and recent data shows a significant milestone for the Ethereum network. If you’re an ETH holder or interested in its future, you’ll want to know that **Staked Ethereum** has reached a new all-time high. This isn’t just a number; it signals shifting dynamics within the network and among its investors.
Staked Ethereum Reaches Record Levels
According to data from Dune Analytics, over 35 million Ether (ETH) are now staked on the Ethereum blockchain’s proof-of-stake network. This represents more than 28.3% of the total Ether supply. Staking involves locking up ETH to help secure the network and validate transactions, in return for rewards.
This record high indicates that a substantial portion of the Ether supply is now locked and unavailable for immediate sale on exchanges. This has a direct impact on the **liquid supply** of ETH, effectively reducing the amount readily available for trading.
Here’s a quick look at the numbers:
- Total ETH Staked: Over 35 million
- Percentage of Total Supply Staked: Over 28.3%
- ETH Staked in June (First Half): Over 500,000
The consistent increase in staked ETH, with over 500,000 ETH staked just in the first half of June, suggests growing conviction among holders.
What This Means for Investor Confidence
A significant increase in staked ETH is often interpreted as a strong signal of **investor confidence**. When investors stake their assets, they commit to holding them for a period, earning passive income from staking rewards rather than trading. This long-term commitment suggests belief in Ethereum’s future prospects and its underlying technology.
Furthermore, data from CryptoQuant shows that Ethereum accumulation addresses (wallets with no history of selling) have reached an all-time high of 22.8 million ETH holdings. This reinforces the idea that many participants view Ethereum as a fundamentally strong asset for long-term holding.
Impact of SEC Staking Guidance
The recent surge in staking activity coincides with a more favorable regulatory environment in the US. The **SEC staking guidance**, specifically a statement from the SEC’s Division of Corporation Finance on May 29, provided clarity.
The guidance suggested that certain “Protocol Staking Activities” on proof-of-stake blockchains may not need to register with the SEC under the Securities Act. This clarification was widely seen as a positive development for the crypto industry, potentially easing regulatory uncertainty around staking services offered by platforms.
While this guidance is positive, the industry still awaits decisions on Ether staking ETFs, such as the one proposed by Bitwise, which was recently delayed by the SEC.
Leading the Way: Lido and Other Major Stakers
Several platforms facilitate ETH staking, with **Lido** being the dominant player. According to Dune data, Lido accounts for over 25% of the 35 million staked Ether tokens. This liquid staking protocol allows users to stake ETH while receiving a liquid token (stETH) that can be used in other DeFi applications.
Other significant contributors to the staked supply include major exchanges:
- Lido: Over 25%
- Binance: 7.5%
- Coinbase: 7.4%
Coinbase has also become a major node operator on Ethereum. The concentration of staked ETH through a few large entities, particularly liquid staking protocols like Lido and centralized exchanges, has raised concerns among decentralization advocates about potential risks of centralization for the network.
However, proponents argue that liquid staking infrastructure has been crucial for institutional adoption, allowing larger players to participate in staking while maintaining liquidity. Konstantin Lomashuk of Lido noted that a significant portion of Lido’s Total Value Locked (TVL) comes from institutions.
Conclusion: A Strong Signal for Ethereum’s Future?
The record high in **Staked Ethereum** is a powerful indicator. It reflects robust **investor confidence**, a shrinking **liquid supply**, and potentially the positive impact of recent **SEC staking guidance**. While concerns about centralization exist, the overall trend suggests a network where a growing number of participants are committed to its long-term health and growth through staking. This milestone is a notable development in the ongoing evolution of the Ethereum ecosystem.
