Staked Ether Supply Hits All-Time High at 28% Amid Market Declines

Despite a week of declines in the cryptocurrency market, the supply of staked Ether reached a new all-time high, with over 28% of the token’s supply now locked in exchange for passive income. This indicates that more investors are opting to hold their tokens rather than selling at current prices. The growing staked Ether supply signals increasing investor confidence and a tightening of the liquid supply of the world’s second-largest cryptocurrency. Over 35 million Ether coins are now staked under the Ethereum blockchain’s proof-of-stake consensus model, according to data from Dune Analytics. Over 500,000 ETH was staked in the first half of June, reflecting rising confidence and a continued drop in liquid supply. Ether accumulation addresses, or holders with no history of selling, have also reached an all-time high of 22.8 million in ETH holdings, indicating that Ethereum is among the strongest crypto assets in terms of long-term fundamentals and investor conviction.

Meanwhile, publicly-traded companies continue to establish corporate cryptocurrency reserves, signaling increased institutional adoption of digital assets beyond Bitcoin. On Thursday, 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 by Friday, after the company secured a $600 million facility from ATW Partners. This move underscores the growing trend of institutions integrating cryptocurrencies into their treasury strategies, further legitimizing the asset class in the eyes of traditional investors.

Crypto-native asset managers have significantly expanded their holdings on blockchains since the start of the year, while institutions increasingly use decentralized finance as a back-end to their services. A new class of crypto-native asset managers is emerging, growing its onchain capital base from roughly $1 billion to over $4 billion since January. These asset managers are quietly deploying capital across a diverse range of opportunities, with major firms having locked in nearly $2 billion in the decentralized lending and borrowing platform Morpho Protocol. This trend is driven by the US administration's support for the sector, giving institutions confidence that they can use crypto and DeFi protocols without facing regulatory litigation.

The growing staked Ether supply and the increasing adoption of cryptocurrencies by institutions reflect a broader shift in the financial landscape. As more investors and companies recognize the potential of digital assets, the demand for staking and other passive income strategies is likely to continue rising. This trend is supported by the development of new technologies and platforms that make it easier for investors to participate in the crypto market, further driving the growth of the industry.