Staked Ether Milestone: Over 30% of ETH Total Supply Now Locked in Proof-of-Stake

The Ethereum ecosystem just hit a major validation point—staking now commands over 30% of all ETH in existence. Here's why this tectonic shift matters.

Proof-of-stake eats proof-of-work's lunch

Validators have quietly amassed a third of Ethereum's circulating supply since the Merge, turning what was once a 'voluntary' upgrade into an institutional inevitability. The staking ratio now rivals traditional finance's savings account penetration—except here, yields aren't rigged by central bankers.

Liquidity vs. security tug-of-war

Every staked ETH strengthens network security but removes tokens from active trading. Exchanges are scrambling to offer liquid staking derivatives (because why solve real problems when you can just repackage the same asset?).

The cynical take? Wall Street will 'discover' staking yields just as they top out—classic late-stage capitalism.

After some outflows from the staking contract during the market panic in March and April, ethereum staking returned to peak levels, not seen since September 2024. ETH staking became one of the most reliable markers for long-term confidence in the network’s value. 

Following the Pectra upgrade, staking also accelerated as large-scale whales could deposit more ETH at a time to build their stake. As a result, the total value staked on Ethereum is at an all-time high. 

The Ethereum network carries over $61B locked in DeFi protocols, including lending, liquid staking, and DEX liquidity pools. ETH remains valuable as collateral, and whales are in no hurry to sell. 

More ETH is wrapped in multiple protocols and is taken off the open market. Whales have also shown increased activity, adding on average 800K ETH per day for the previous week, while only 16K new ETH are produced each week. Whales are showing unprecedented levels of accumulation, boosting the narrative of a long-awaited price breakout.

ETH exchange reserves remain scarce, at around 19M tokens. ETFs are also actively buying, with BlackRock recently absorbing the stake sold by Grayscale. ETH is also becoming attractive to corporate buyers as a collateral asset.

The Ethereum network also awaits a new upgrade, which could further scale and speed up transactions. Despite the relatively high price compared to other networks, Ethereum remains a key platform for DeFi. Based on smart contract activity, the network’s main use cases are ETH transfers, while USDT and USDC remain some of the busiest smart contracts.

ETH remains undervalued with volatile trading

The current status of ETH is raising expectations for a catch-up rally. Trading under $2,500, ETH is seen as undervalued, despite the peak on-chain activity. Transactions have been climbing for Ethereum throughout 2025, reaching a higher baseline, with the occasional day of anomalous record activity. 

Despite this, the ETH market price remains close to its lows, still crashing after each breakout. In June, ETH failed to reclaim the $3,000 level. The token is down around 5% in June, though Q2 may end with significant net gains. ETH expanded by 31.8% in Q2, mostly driven by the peak gains in May. 

The multiple bullish factors for ETH are still not enough to spark a more decisive rally. In June, there is still an expectation for a breakout, where ETH can rally as high as $10,000. Even without a rally, Ethereum has shown it is not a dead chain. Recently, the network drew in over $334M in daily net inflows from bridges, as value returned to the biggest liquidity hub. 

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