Ethereum Staking Reaches 28.3% of Total Supply Valued at $84 Billion

Ethereum has reached a significant milestone as more than 35 million ETH, equivalent to 28.3 percent of its total supply, is now locked in staking contracts. This represents the highest proportion of ETH ever secured for network validation, with the staked ETH valued at over $84 billion at current market prices. The steady increase in staked ETH since the Merge reflects growing confidence in Ethereum’s proof-of-stake security model. In June alone, over 500,000 ETH were added to staking pools in the first half of the month, indicating a surge in interest and trust in the network.

However, 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, followed by Binance and Coinbase, each managing around 7.5 percent of the stake. This concentration of power raises concerns about potential outages or coordinated censorship events, which could affect more than 40 percent of newly proposed blocks. As more ETH is locked up, the liquid supply falls to post-Merge lows, with an additional 19 percent of ETH held in long-term wallets, leaving under 53 percent of the supply freely tradable. This reduction in float has tightened order books and amplified price swings, leading to rising borrowing rates for liquid-staking derivatives on protocols such as Aave and Compound.

Institutional confidence in Ethereum continues to grow, with firms allocating capital 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. For example, SharpLink Gaming 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, with a market cap of $292.8 billion at the time of writing. 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 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, with U.S. regulatory clarity triggering a notable uptick in large-wallet stakes. Several whales opted to lock in ETH for yield rather than hold unencumbered tokens. However, the concentration of validator power has reignited governance debates, as 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. The network’s ability to address these challenges will be crucial in maintaining its position as a leading platform for smart-contract activity and decentralized finance.