Ethereum staking has surpassed a significant milestone, with over 35 million ETH, representing more than 28.3% of the total supply, now locked in the network's proof-of-stake system. This surge in staking persists despite subdued broader market conditions, highlighting sustained long-term holder conviction and a tightening of liquid ETH supply.
Data from Dune Analytics indicates that in the first half of June alone, more than 500,000 ETH were staked, signaling a shift in investor behavior toward earning yield rather than short-term selling. The Securities and Exchange Commission (SEC) clarified in late May 2024 that protocol-based staking is not subject to securities registration, providing regulatory clarity that has encouraged institutional staking participation.
Lido leads liquid staking protocols, controlling roughly a quarter of all staked ETH. Binance and Coinbase also play major roles, collectively validating around 15% of the network’s staked ETH. Coinbase has emerged as the largest Ethereum node operator, managing over 11.4% of staked ETH via its validators. The growing centralization concerns stem from the concentration of staked ETH among these platforms.
Institutional adoption is accelerating, with Nasdaq-listed SharpLink Gaming notably purchasing $463 million worth of ETH and staking over 95% of its holdings. This corporate accumulation strategy treats ETH as a long-term treasury asset, bolstered by staking yields around 3% annually and regulatory confirmation enabling institutional entry.
Ethereum whale accumulation has reached a seven-year high, with major wallets adding over 871,000 ETH in a single day. This renewed accumulation often precedes price upticks, supported by expectations of upcoming Ethereum upgrades, increased real-world asset tokenization, and Layer 2 network adoption such as Arbitrum and Optimism.
However, not all Ethereum-linked entities have seen positive outcomes, as SharpLink Gaming’s shares dropped sharply after moves to register shares for resale post large ETH acquisitions.