In a significant milestone for the Ethereum network, the total amount of staked Ether has soared to a record 35 million ETH, as of today, June 17, 2025. This marks a pivotal shift in investor sentiment, as over 28% of the total Ether supply is now locked up, reflecting a strong commitment to long-term holding strategies among crypto enthusiasts.
The Staking Surge
The Ethereum network has seen a dramatic uptick in staking activity, a trend that has been gathering momentum ever since the much-anticipated transition to Ethereum 2.0. The move to proof-of-stake (PoS) has incentivized ETH holders to lock their tokens in staking pools in exchange for attractive rewards, often measured in annual percentage yields (APY). This shift has not only reduced the liquid supply of ETH available for day-to-day transactions but has also underscored a broader investor strategy focused on long-term value appreciation. This follows a pattern of institutional adoption, which we detailed in our analysis of Ethereum network growth and spot ETH ETF inflows.
“Staking has become a cornerstone of Ethereum’s network economics,” notes Sarah Liu, a blockchain analyst at Crypto Insights. “The allure of staking rewards, combined with the network’s growing adoption, has convinced many investors that their ETH is better served in staking contracts rather than trading or liquid holdings.”
Ripples in the Crypto Market
The implications of this staking frenzy are manifold. On one hand, the reduced liquid supply of Ether could potentially drive up demand — and consequently, prices — as traders scramble for the dwindling circulating supply. On the other hand, some market watchers warn of potential liquidity challenges, especially during periods of heightened volatility.
Here’s the catch: while the staking boom is a bullish signal for Ethereum’s long-term prospects, it also raises questions about market dynamics. With a substantial portion of ETH locked up, how will the network handle sudden spikes in demand or unexpected sell-offs?
“Liquidity is a double-edged sword,” comments Tom Vance, a crypto market strategist with BlockWave Analytics. “While staking certainly supports price stability and network security, it also means that during a market downturn, there might not be enough liquid ETH to absorb the selling pressure without significant price swings.”
Historical Context and Future Outlook
The journey to this staking milestone has been a tale of evolution. Since the launch of Ethereum’s Beacon Chain in December 2020, the network has methodically transitioned from its original proof-of-work (PoW) model to the more energy-efficient PoS paradigm. This shift, often referred to as “The Merge,” was a critical turning point, designed to enhance scalability, security, and sustainability.
Looking ahead, the continued growth of staked Ether could have profound implications for Ethereum’s role as a leading smart contract platform. As more developers and projects flock to the network, buoyed by its robust security and infrastructure, Ethereum’s dominance in the decentralized finance (DeFi) and non-fungible token (NFT) spaces seems poised to strengthen. The Ethereum Foundation’s strategic moves, such as setting a treasury strategy to back DeFi, as explored in our recent article, further underscore this potential.
Yet, this upward trajectory is not without its challenges. Regulatory scrutiny, technological hurdles, and potential competition from emerging blockchain networks could all impact Ethereum’s future.
In the coming months, all eyes will be on how Ethereum’s network upgrades, like the much-anticipated “Danksharding,” unfold. These enhancements are expected to further reduce congestion and lower transaction costs, making staking and other network operations even more attractive.
As the crypto landscape continues to evolve, one thing remains clear: the surge in staked Ethereum is a testament to the network’s resilience and the unwavering confidence of its community. Whether this trend can sustain itself amid the ever-shifting tides of the digital asset world remains an open question — but it’s one that market participants are watching closely.
Source
This article is based on: Staked Ethereum hits 35M ETH high as liquid supply declines
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
