Ethereum News: Staking Hits All-Time High, Over 28% of Supply Locked

Latest Ethereum news saw the leading altcoin quietly crossed a critical milestone: more than 35 million ETH, equal to 28.3 percent of its total supply, now sits locked in staking contracts.

At current market prices, that stake is worth over $84 billion. This marks the highest proportion of ETH ever secured for network validation.

Record ETH Staking Milestone

Staked ETH has climbed steadily since the Merge. Data shows the total hitting 35 million ETH, up from roughly 30 million six months ago.

In June alone, over 500,000 ETH were added to staking pools in the first half of the month, according to Sentora. This surge reflects growing confidence in Ethereum’s proof‑of‑stake security model.

As per recent Ethereum news reports, concerns about centralization have emerged as the three largest staking entities now control nearly 40 percent of all validator balances.

Liquid‑staking provider Lido leads with about 8.7 million ETH—25 percent of the staked total—followed by Binance and Coinbase, each managing around 7.5 percent of the stake.

Sentora warns that an outage or coordinated censorship event at any of these three could affect more than 40 percent of newly proposed blocks.

As more ETH locks up, the liquid supply falls to post‑Merge lows. BeInCrypto notes that an additional 19 percent of ETH is held in long‑term wallets, leaving under 53 percent of the supply freely tradable.

This shrink in float has tightened order books and amplified price swings. DeFi lenders report rising borrowing rates for liquid‑staking derivatives—stETH, rETH, and frxETH—on protocols such as Aave and Compound.

Ethereum News: Institutional Confidence Spurs Growth

Firms are allocating capital to Ethereum to broaden their treasury portfolios, earn staking rewards, and tap into rising institutional crypto adoption.

While most corporations still favor Bitcoin as their chief reserve asset, a handful view Ether similarly.

SharpLink Gaming, for example, holds 176,271 ETH as its principal treasury asset and has generated substantial yield, serving as a benchmark for other ETH‑holding firms.

Ethereum ranks second to Bitcoin in market acceptance and value. At the time of writing, it traded at $2,439—up 0.51% on the day—with a market cap of $292.8 billion, off 1.25%.

As the leading platform for smart‑contract activity, Ethereum tops blockchain revenue charts and is widely regarded for its robustness. The approval and launch of ETH spot ETFs have spurred further user and trader interest.

Ethereum’s Expanding Role DeFi

Meanwhile, Ether’s role in decentralized finance, NFTs, and enterprise solutions continues to drive corporate demand.

The SEC’s May 2025 guidance on digital‑asset securities has bolstered institutional staking.

According to Sentora, U.S. regulatory clarity triggered a notable uptick in large‑wallet stakes. Several whales opted to lock in ETH for yield rather than hold unencumbered tokens.

The concentration of validator power has reignited governance debates. Ethereum’s security relies on a broad distribution of stake.

When a handful of entities control block validation, the network risks potential slashing events and governance capture.

Developers and community members have scheduled discussions for late July to explore decentralization measures and promote a more resilient validator set.

Ethereum’s staking growth reveals both strengths and challenges of its proof‑of‑stake transition. Locking 28.3 percent of the supply—over $84 billion—signals robust institutional backing and network security.

Simultaneously, the dominance of a few validators and the shrinking liquid float prompt urgent calls for enhanced decentralization and DeFi risk management.

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