Ethereum Drops 4.877% Amidst Staking Surge, Institutional Interest

Ethereum's latest price was $2399.73, down 4.877% in the last 24 hours. This price movement comes amidst significant network activity and staking growth for Ethereum. Over 500,000 ETH have been staked since June 1, bringing the total staked supply to over 35 million ETH. This increase in staking reflects strong holder confidence and a decreasing liquid supply, as more investors opt for passive yield over short-term trading. The staked supply now accounts for over 28% of Ethereum's circulating supply, which is over 120 million tokens. This trend is driven by both individual investors and corporate treasuries, with firms like SharpLink Gaming purchasing and staking large amounts of ETH. SharpLink, for instance, purchased $463 million worth of ETH and staked over 95% of its holdings. This shift towards staking is also supported by regulatory clarity, with the SEC's guidance in May 2024 effectively greenlighting institutional participation in protocol-level staking.

Ethereum's network activity has also been accelerating, with 800,000 to 1 million new addresses created every week and weekly transactions reaching a one-year high. This increased activity suggests growing interest and usage of the Ethereum network. Additionally, Ethereum ETFs have seen significant inflows, with over $861 million in net inflows over the last two weeks. This renewed interest in Ethereum ETFs comes as the cryptocurrency finds itself in the middle of regulatory actions in the US and sees new progress around stablecoins, which mostly run on the Ethereum network. The IPO of Circle, the company behind the second-largest stablecoin, and a leadership shake-up at the Ethereum Foundation have also drawn institutions back in. Institutions are recalibrating their strategies, quietly building positions in anticipation of utility unlocks like staking access, options listings, and eventual inflows from retirement platforms. The arbitrage window, where the CME basis on Ethereum is wider than Bitcoin's, is also helping to drive steady ETF inflows.

Vitalik Buterin, co-founder of Ethereum, declared on June 20, 2025, that "Ethereum Layer 1 is the world’s ledger." This statement underscores Ethereum's position as a globally significant, decentralized ledger and has garnered increased institutional confidence and market activity. Buterin emphasized Ethereum's decentralization, security, and neutrality, which align with its advantages over rival blockchains. The Ethereum community actively supports the decentralization roadmap, promising long-term resilience and security. Market reactions to Buterin's statement were notable, with institutional actions further attesting to Ethereum’s strategic investment appeal. BlackRock's fund allocation, for example, signals institutional trust and prompts positive speculations in financial markets. Ethereum's historical market activities, catalyzed by Buterin's panels at Ethereum events, reinforce ETH's reputation as a resilient and primary blockchain protocol. Analysts suggest that Ethereum's trajectory reinforces its integral market role, with Buterin's focus on scaling and decentralization solidifying its industry-leading position. Emergent solutions stressing transparency and neutrality continue to make Ethereum attractive for institutional and retail stakeholders alike, driving potential technological advancements and adoption growth.

Despite the overall downside in the cryptocurrency market, the staked Ether supply reached a new all-time high, with over 28% of the token’s supply now locked in exchange for passive income. This growing staked supply indicates that more investors are preparing to hold their tokens instead of selling at current prices. Publicly-traded companies are also establishing corporate cryptocurrency reserves, signaling increased institutional adoption of digital assets beyond Bitcoin. For example, Nasdaq-listed Lion Group Holding announced plans to establish a $600 million crypto treasury reserve, with the Hyperliquid token as its main asset. The Singapore-based trading platform will deploy its first $10.6 million investment, after securing a $600 million facility from ATW Partners. This trend of corporate treasuries accumulating ETH and staking it for yield is likely to continue, further tightening the liquid supply of Ethereum and supporting its long-term value proposition.