Ethereum Staking Reaches New High as Liquid Supply Tightens
- The supply of staked Ether has reached an all-time high, with over 35 million ETH now staked.
- More than 28.3% of the total Ether supply is locked in smart contracts, indicating increased investor confidence.
- Over half a million ETH was staked in the first half of June, contributing to a decrease in liquid supply.
- The U.S. SEC’s recent guidance suggests that certain protocol staking activities do not require registration under the Securities Act.
- Lido accounts for over a quarter of the staked Ether supply, while Binance and Coinbase hold significant shares as well.
The record-high staking levels reflect growing investor confidence in Ethereum’s long-term fundamentals and a more favorable regulatory outlook in the U.S., which has eased concerns about staking being classified as securities offerings. The substantial percentage of Ether being locked up also indicates reduced liquidity in the market, potentially impacting trading dynamics.
With over a quarter of its staked supply channeled through Lido and significant holdings by major exchanges like Binance and Coinbase, Ethereum’s network sees both increased centralization risks and institutional adoption benefits from liquid staking protocols. (Source)
