Ethereum has achieved a significant network milestone, with nearly 30% of its total supply now staked. This figure, highlighted by data from Cointelegraph, represents a major vote of confidence in the network's long-term value and security. The transition to a proof-of-stake consensus mechanism, completed with "The Merge," has made staking essential for validating transactions and maintaining the blockchain, with participants earning rewards for locking their ETH.
This milestone is further underscored by a major institutional commitment. BitMine Immersion Technologies, led by prominent crypto advocate Tom Lee, has staked an additional $277.5 million worth of Ethereum. This latest move brings the company's total staked ETH to a staggering $5.66 billion. BitMine reportedly holds approximately $13 billion in Ethereum overall, with a significant portion now locked in staking contracts.
The company's strategy, as articulated, is focused on generating steady income through staking rewards while avoiding the market pressure that could come from large-scale sales. By staking instead of selling, BitMine reduces the immediately available circulating supply of ETH, which analysts suggest could create upward price pressure over time and lower the risk of panic selling.
While the high staking rate bolsters network security by making attacks more costly, it raises concerns about centralization. A substantial amount of staked ETH is funneled through large platforms and liquid staking providers like Lido and Coinbase. Experts warn that if too much control is concentrated with a few entities, it could undermine Ethereum's decentralized foundations.
Nevertheless, reaching the 30% staking threshold is widely viewed as a sign of Ethereum's maturation. It indicates that users and institutions are actively participating in the ecosystem's security and governance, cementing staking as a core feature of ETH's role in the broader cryptocurrency landscape.
