Staked Ethereum Hits 34.65 Million Mark as Price Surges 8%

Staked Ethereum has reached an unprecedented milestone, with over 34.65 million ETH now locked in the Beacon Chain, marking a new all-time high. This surge in staking activity comes as the price of ETH reclaimed a 12-day high, surpassing $2,700. The amount of staked ETH has been relatively stable above 33 million for the past year, but it began to rise again in June, indicating a growing preference among holders to earn yields through staking rather than selling at current levels.

The record-high staking level is confirmed by multiple analytics platforms, with Dune Analytics reporting 34.8 million ETH staked as of Monday, and Ultrasound.Money reporting 34.7 million. This staked amount represents approximately 28.7% of the current circulating supply of Ether, which stands at 120.8 million. The increase in staking coincides with the return of issuance to an inflationary state in February.

The milestone in staking activity comes at a time when the industry is anticipating the approval of spot Ether ETF staking by the US Securities and Exchange Commission. Analysts have suggested that staked Ether ETFs could debut within the next few weeks, following a recent filing by ETF provider REX Shares that utilized regulatory workarounds. Additionally, BlackRock’s iShares Ethereum Trust (ETHA) has been aggressively accumulating ETH, with 23 consecutive trading days without an outflow.

Despite the lackluster price performance of ETH over the past two years, which has seen a gain of around 50% but not a new all-time high, the amount of staked Ethereum has surged by 77%. On Tuesday, ETH prices gained more than 8% to reclaim $2,700, marking its highest price since May 29. The $2,700 price zone has served as resistance four times over the past month, and breaking this level could signal continued momentum for ETH.

This increase in staking activity suggests that more holders are opting to lock their ETH in the Beacon Chain to earn yields, rather than selling their assets. The higher staking level indicates that holders are confident in the long-term prospects of Ethereum and are willing to forgo immediate liquidity for potential future gains. This trend is further supported by the aggressive accumulation of ETH by major institutional players, such as BlackRock’s iShares Ethereum Trust.

The anticipation of spot Ether ETF staking approval by the US Securities and Exchange Commission adds another layer of optimism to the market. If approved, staked Ether ETFs could provide a new avenue for institutional investors to gain exposure to Ethereum, potentially driving further demand and price appreciation. The recent filing by ETF provider REX Shares, which utilized regulatory workarounds, has fueled speculation that staked Ether ETFs could debut within the next few weeks.

In summary, the record-high staking of Ethereum, coupled with the price reclaiming a 12-day high, signals a growing confidence among holders and institutional investors in the long-term prospects of Ethereum. The anticipation of spot Ether ETF staking approval and the aggressive accumulation of ETH by major players further support this optimistic outlook. As the market continues to evolve, the staking trend and price performance of ETH will be closely watched by investors and analysts alike.