Ethereum's Resurgent Staking Momentum and Its Implications for Long-Term Holder Confidence

The recent staking of $646 million worth of Ethereum (150,000 ETH) by an ICO-era whale after three years of dormancy has ignited renewed debate about institutional-grade demand for the asset. This activity, reported in late September 2025, underscores a critical shift in sentiment among long-term holders and may signal structural confidence in Ethereum’s proof-of-stake (PoS) model.

Institutional Confidence in Ethereum’s PoS Model

The whale in question, who originally acquired 1 million ETH for $310,000 during Ethereum’s 2014 ICO, has now staked 150,000 ETH—valued at $646 million—as of September 5, 2025 [1]. This move, after a four-year dormancy, reflects a strategic bet on Ethereum’s PoS framework. By locking up such a massive amount, the whale is effectively signaling belief in the network’s security, yield potential, and long-term value proposition.

Institutional investors, often cautious about market volatility, are increasingly viewing staking as a mechanism to generate passive income while supporting network security. Ethereum’s transition to PoS in September 2022 has made staking more accessible, with annualized yields hovering around 4–6% in 2025 [2]. For a whale holding over $1.1 billion in ETH, staking offers a way to monetize idle assets without exposing them to short-term price swings.

Structural Demand and Supply Dynamics

The whale’s action aligns with broader trends in Ethereum’s ecosystem. According to on-chain analysts, the staking entry queue has surpassed the exit queue for the first time in weeks, indicating a net inflow of capital into staking [3]. This inversion suggests that long-term holders are prioritizing yield generation over liquidity, a behavior typically associated with institutional-grade strategies.

Moreover, staking reduces the circulating supply of ETH by locking tokens in validator accounts. With Ethereum’s supply model already constrained by annual burns (averaging 0.5% of total supply in 2025), increased staking activity could amplify deflationary pressures. This dynamic may create a flywheel effect: higher staking demand → reduced circulating supply → upward price pressure → further incentivizing staking.

Market Psychology and Whale Behavior

The resurfacing of dormant ICO-era wallets is not an isolated event. Over the past six months, on-chain data has shown a 23% increase in activity from wallets holding over 10,000 ETH [1]. These movements, often interpreted as “whale accumulation,” are now being paired with staking, signaling a shift from speculative holding to active participation in network governance.

For context, the whale in question still holds over 105,000 ETH in two wallets, valued at $451 million [2]. By staking a portion of its holdings, it balances risk management with yield optimization—a strategy akin to institutional investors diversifying across asset classes. This behavior contrasts with the 2022–2023 bear market, when many whales liquidated or moved funds to centralized exchanges.

Implications for Ethereum’s Price Resilience

The whale’s staking activity could serve as a catalyst for Ethereum’s price resilience in a volatile market. Staking rewards provide a guaranteed return, which becomes increasingly attractive as traditional asset yields (e.g., U.S. Treasuries) remain low. In 2025, Ethereum’s staking yield outperforms 10-year Treasury bonds by a margin of 3–4 percentage points [3], making it a compelling option for capital preservation.

Additionally, the whale’s move may trigger a cascade effect. If other long-term holders follow suit, the cumulative impact on Ethereum’s demand profile could rival that of macroeconomic factors like ETF approvals or macroeconomic data. This is particularly relevant as Ethereum approaches its next halving event in 2026, which is expected to further reduce validator rewards and tighten supply.

Conclusion

The staking of $646 million by an ICO-era whale is more than a technical event—it is a barometer of institutional-grade confidence in Ethereum’s future. By aligning with PoS incentives, reducing circulating supply, and signaling long-term commitment, this activity reinforces Ethereum’s narrative as a deflationary, yield-generating asset. For investors, the whale’s move serves as a reminder that on-chain behavior, particularly from large holders, can be a leading indicator of market cycles. As the staking queue continues to outpace exits, Ethereum’s structural demand story gains further credibility in an increasingly competitive crypto landscape.

Source:
[1] The Daily: Justin Sun pleads innocence after WLFI blacklisting, dormant Ethereum ICO whale moves $646M in ETH, and more [https://www.theblock.co/post/369666/the-daily-justin-sun-pleads-innocence-after-wlfi-blacklisting-dormant-ethereum-ico-whale-moves-646m-in-eth-and-more]
[2] Ethereum Whale Stakes 150,000 ETH ($646M) After 4 Years of Dormancy — On-Chain Data Confirms ICO-Era Holder Activity [https://blockchain.news/flashnews/ethereum-whale-stakes-150-000-eth-646m-after-4-years-of-dormancy-on-chain-data-confirms-ico-era-holder-activity]
[3] Ethereum Staking Queue Overtakes Exits as Fears of a Sell-Off Subside [https://www.coindesk.com/business/2025/09/05/ethereum-staking-queue-overtakes-exits-as-fears-of-a-sell-off-subside]