Ethereum just reached a major milestone, and it’s sending ripples across the crypto market. According to the latest data from Dune Analytics, over 35 million ETH is now staked—marking a new all-time high for the network. That’s more than 28% of Ethereum’s entire circulating supply, which currently stands at over 120 million.
As more investors and institutions choose to lock their ETH for passive income, the amount of liquid ETH available for trading is rapidly shrinking—raising the potential for a massive supply squeeze.
What’s Driving the Surge in Ethereum Staking?
Ethereum transitioned to a proof-of-stake consensus model back in 2022. Since then, staking has grown steadily. But in recent months, the pace has picked up sharply.
In just the first half of June 2025, more than 500,000 ETH was staked, according to a report by CryptoQuant. Platforms like Lido Finance continue to dominate liquid staking, now managing 8.75 million ETH, or roughly a quarter of the total staked tokens.
Other centralized exchanges such as Coinbase and Binance together account for another 15% of staked ETH, reinforcing the widespread shift toward holding ETH for yield instead of trading it short-term.
Institutions Are Quietly Hoarding ETH
The real momentum is coming from off-chain players—public companies and institutional investors that are adding ETH to their balance sheets. One of the most notable examples is SharpLink Gaming, a Nasdaq-listed firm that recently purchased $463 million worth of ETH.
Even more impressively, SharpLink has staked over 95% of its ETH holdings. This not only earns the company a passive yield (around 3% annually), but also supports the Ethereum network by enhancing its security.
This shift marks a new phase in Ethereum’s evolution—from a smart contract platform to a mainstream financial asset with long-term holding appeal.
Regulatory Clarity Fuels Confidence
Part of what’s making institutions more comfortable with Ethereum staking is new guidance from U.S. regulators. In May 2024, the SEC clarified that protocol-level staking is not considered a securities offering, opening the door for more corporate and institutional participation without legal uncertainty.
What It Means for ETH Price and Market Dynamics
With a growing percentage of ETH locked in staking contracts, the supply available on exchanges continues to shrink. Fewer tokens available for buying typically leads to increased scarcity—especially when demand is rising, as seen with the recent inflows into Ethereum ETFs.
If the trend continues, analysts believe this could drive upward pressure on ETH prices, especially if Ethereum continues to see adoption as a treasury asset by more corporations.
Conclusion: Is ETH Becoming the New Digital Gold?
The narrative around Ethereum is evolving. It’s no longer just about DeFi, NFTs, or smart contracts. Now, Ethereum is becoming a favored long-term holding for institutions, driven by staking rewards, network security, and regulatory clarity.
With over 35 million ETH staked and counting, the market may soon face a real supply crunch—and if demand keeps rising, it could set the stage for Ethereum’s next big rally.
