The Ethereum staking landscape has reached a pivotal milestone, with a total of 35 million staked ETH tokens for the first time in history. This unprecedented achievement signals a fundamental shift in market dynamics, as reduced liquid supply creates potential upward pressure on ETH prices while showcasing growing institutional and retail confidence in Ethereum’s long-term prospects.
Breaking Down the 35M ETH Staking Milestone
Over 28% of the total Ether supply is now staked, representing approximately 27.57% of the total ETH supply currently in circulation. This remarkable figure illustrates the increasing commitment of investors to hold their assets for extended periods, which is fundamentally altering Ethereum’s supply dynamics.
The surge in staking activity has been particularly pronounced in recent months. According to data from on-chain analytics platform CryptoQuant, more than 500,000 ETH were staked in the first half of June 2025 alone, contributing to this all-time high and underscoring sustained investor confidence in Ethereum’s proof-of-stake ecosystem.
Market Leaders Dominating the Staking Landscape
Lido Finance Maintains Top Position
Over 25% of the 35 million staked Ether tokens have been deployed through the liquid staking protocol Lido, cementing its position as the dominant player in the liquid staking space. This concentration highlights the preference for liquid staking solutions that allow users to maintain flexibility while earning rewards.
Exchange Giants Compete for Market Share
The competition among major exchanges for staking dominance remains intense:
- Binance: Holds 7.5% of the staked Ether supply
- Coinbase holds 7.4% of the staked Ether supply and has become Ethereum’s largest node operator, controlling over 11.4% of validator nodes.
This distribution pattern reveals how institutional players are increasingly capturing market share in the staking ecosystem, providing users with accessible entry points into Ethereum staking.
Supply Dynamics Creating Market Pressure
Liquid Supply Contraction Effects
The massive amount of staked ETH is creating a supply squeeze that could have significant market implications. With fewer ETH available for trading, the liquid supply decreases, which could create upward price pressure, especially if demand increases.
This supply contraction is particularly noteworthy given Ethereum’s role as the backbone of the decentralised finance (DeFi) ecosystem. As more ETH becomes locked in staking contracts, the available supply for trading and DeFi activities diminishes, potentially creating scarcity-driven value appreciation.
Whale Accumulation Patterns
Institutional and whale activity further supports the bullish narrative. According to data shared by crypto analyst Merlijn The Trader, Ethereum whales bought $2.5 billion worth of ETH in a single day, demonstrating large-scale accumulation behaviour that complements the staking trend.
Accumulation addresses — these are wallets that have never sold any ETH and continue to grow, indicating a strong holding mentality among long-term investors who view current market conditions as opportunities for accumulation.
Price Performance vs. Staking Growth
Market Volatility Amid Staking Surge
Interestingly, the growth in staking hasn’t immediately translated to price stability. Ethereum’s price has shown higher volatility during this period. Starting around $3,400 in mid-2024, the asset experienced a decline early in 2025, dropping to roughly $1,500 in April.
This disconnect between stakeholder growth and price performance highlights several important factors:
- Long-term vs. Short-term Perspectives: Stakeholders are looking beyond immediate price movements
- Market Maturation: The separation of staking behaviour from short-term trading patterns
- Fundamental Strength: Continued network growth despite price volatility
The Rise of Liquid Staking Solutions
Addressing Liquidity Concerns
Traditional staking required users to lock up their ETH indefinitely, creating liquidity constraints. Liquid staking protocols have revolutionised this model by issuing derivative tokens that represent staked ETH, allowing users to maintain liquidity while earning staking rewards.
With liquid staking, your tokens can serve dual purposes. By leveraging staking services, you can earn staking rewards while simultaneously participating in yield farming or other activities in the DeFi space.
Growing Ecosystem Value
Ethereum liquid staking has attracted over $40 billion in total value locked (TVL). It accounted for approximately 80% of the total staked Ether, indicating a strong preference for flexible staking solutions over traditional locked staking.
Yield Environment and Market Outlook
Current Yield Landscape
Yields remain below 5%, while risks, including liquidity constraints, slashing penalties, and centralisation concerns, continue to shape the staking landscape. Despite relatively modest yields compared to some DeFi protocols, the stability and security of Ethereum staking continue to attract capital.
Future Network Upgrades
The Pectra upgrade in 2025 will raise validator limits, reshaping participation, potentially allowing for more efficient staking operations and increased validator diversity. This upgrade could further accelerate staking adoption by reducing barriers to entry for smaller validators.
Investment Implications and Strategic Considerations
Long-term Network Security
The number of validators is increasing. This trend is expected to continue by 2025, further strengthening the network’s decentralisation and security. This growing validator base enhances Ethereum’s security model, making the network more resilient against attacks.
Market Dynamics Shifting
The 35M ETH staking milestone represents more than just a numerical achievement—it signals a fundamental shift in how market participants view Ethereum. The willingness to lock up nearly 30% of the total supply demonstrates unprecedented confidence in the network’s long-term value proposition.
Risk Considerations
While the staking surge is mainly positive, investors should consider several factors:
- Centralisation Risks: Large players controlling significant portions of staked ETH
- Technical Risks: Smart contract vulnerabilities in liquid staking protocols
- Regulatory Uncertainty: Potential regulatory changes affecting staking operations
- Market Volatility: Price fluctuations despite strong fundamentals
What This Means for the Broader Crypto Market
DeFi Ecosystem Impact
As more Ethereum tokens are locked in staking contracts, the Total Value Locked (TVL) will continue to rise. As more people get involved in DeFi, the interplay between staking and DeFi protocols becomes increasingly important.
The reduced liquid supply could benefit DeFi protocols by creating scarcity, potentially driving up yields and creating more attractive opportunities for the remaining liquid ETH.
Institutional Adoption Signal
The milestone also serves as a strong signal of institutional adoption. With major exchanges and institutions controlling significant portions of staked ETH, we’re witnessing the maturation of cryptocurrency infrastructure and the growing acceptance of crypto assets as legitimate investment vehicles.
Looking Ahead: Future Projections and Trends
Continued Growth Trajectory
Staking inflows have slowed since The Merge, but the Pectra upgrade in 2025 will raise validator limits, reshaping participation. This suggests that while growth rates may moderate, the absolute amount of staked ETH will likely continue increasing.
Market Efficiency Improvements
As the staking ecosystem matures, we can expect:
- More efficient liquid staking protocols
- Reduced fees and improved yields
- Enhanced security measures
- Greater decentralisation of validator operations
Conclusion
The achievement of 35 million staked ETH represents a watershed moment for Ethereum and the broader cryptocurrency ecosystem. This milestone demonstrates not only growing adoption but also a fundamental shift in how investors view digital assets—from speculative trading vehicles to long-term value stores worthy of commitment.
Together, staking growth and accumulation behaviour are reducing the liquid supply of Ethereum, which can have long-term effects on market dynamics. As supply tightens and demand potentially increases, the stage may be set for significant price appreciation, assuming broader market conditions remain favourable.
