Ethereum transactions have skyrocketed to unprecedented levels, fueled by a surge in staked ether and a significant regulatory nod from the U.S. Securities and Exchange Commission (SEC). Earlier this week, the Ethereum network achieved a new milestone with a seven-day average of daily transactions hitting 1.74 million, surpassing the previous peak from May 2021. This activity boom underscores the growing appeal of staking in the crypto ecosystem, driven by newfound regulatory clarity.
Regulatory Winds Favor Ethereum
The SEC’s recent declaration that specific liquid staking activities and “staking receipt tokens” don’t qualify as securities under the 1933 Securities Act has sent ripples through the crypto world. This regulatory clarity is a game-changer, removing some of the legal cobwebs that have long haunted staking products. As explored in our recent coverage of SEC’s guidance on liquid staking tokens, this move is seen as a win for DeFi and institutions, potentially boosting demand for staked ether and, in turn, reducing the sell-off pressure on ETH.
Data from Dune Analytics reveals that over 36 million ETH, nearly 30% of its total supply, is now locked in staking contracts. This reflects a strategic choice by holders to prioritize yield over liquidity, especially as ETH flirts with the $4,000 mark—territory not explored since December of last year.
The Treasury Effect and Market Dynamics
Ethereum’s price movement isn’t just about staking dynamics. The emergence of crypto treasury companies—entities that hold ETH as part of their financial strategy—has been pivotal. These firms, including BitMine Immersion Technologies and SharpLink Gaming, together hold billions in ETH, reinforcing the narrative of Ethereum as a solid treasury asset. Vitalik Buterin, Ethereum’s co-founder, weighed in on this development in a recent podcast. “ETH just being an asset that companies can have as part of their treasury is good and valuable,” Buterin expressed, acknowledging the benefits of financial diversification.
However, Buterin also sounded a note of caution about the potential risks of over-leverage. He painted a picture of a future where excessive borrowing against these treasury assets could trigger a cascading sell-off, drawing a parallel to past crypto debacles. “If treasuries led to the downfall of ETH… my guess would be that somehow they turned it into an overleveraged game,” Buterin mused, alluding to the notorious collapse of Terra.
Staking Surge and Market Confidence
The enthusiasm around staking is palpable. In the first half of June alone, more than 500,000 ETH—valued at approximately $1.8 billion—were committed to staking, according to CryptoQuant’s Onchainschool. This uptick aligns with a broader narrative of rising confidence among investors, who are seemingly betting on ETH’s continued ascent. As noted in our analysis of Lido’s market share, the dynamics of Ethereum’s staking landscape are shifting, with major players experiencing changes in their market positions.
As ETH has rallied 163% from its April low, trading near $3,909, it is closing the performance gap with heavyweights like Bitcoin and Solana. The rally signifies a renewed vigor among investors, buoyed by both the regulatory green light and the strategic maneuvers of crypto treasury companies.
The Ethereum landscape is evolving, with regulatory clarity and innovative financial strategies reshaping its contours. The question now is whether this momentum is sustainable or if potential pitfalls, like over-leverage, could disrupt the upward trajectory. But for now, the mood in the Ethereum camp is decidedly bullish, bolstered by a mix of regulatory support, market confidence, and strategic asset management.
Source
This article is based on: Ethereum Transactions Hit Record High as Staking, SEC Clarity Fuel ETH Rally
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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.
