Ethereum has marked two significant milestones that indicate a deepening commitment from its community. Currently, over 35 million ETH are locked in staking contracts, setting a new all-time high, while 22.8 million ETH is held in wallets that appear inactive in terms of sales.
These statistics suggest a maturing network where short-term market fluctuations are no longer the central narrative. With less ETH available for trading, this could potentially affect future price movements.
Nearly 30 Percent of ETH Supply Is Now Locked
As reported by CryptoQuant, more than 500,000 ETH were staked in the first half of June, pushing the staked tally over 35 million ETH, which constitutes nearly 29% of the total circulating supply.
NEW: Staked #Ethereum hits record of 35M $ETH with 28%+ of total supply locked, reflecting growing investor confidence and shrinking liquid supply.
Alexia’s Tweet This surge largely stems from whale activity—wallets containing between 1,000 and 10,000 ETH accumulating substantial amounts daily. For instance, on June 12 alone, whale deposits exceeded 870,000 ETH.
Staking is predominantly concentrated on platforms like Lido, which accounts for roughly 25% of all staked ETH, while Coinbase and Binance manage about 7.5% each. While this concentration poses questions regarding decentralization, it also displays significant involvement from major market players.
Regulatory Clarity Is Fueling Confidence
The increasing popularity of staking can be partly attributed to a more predictable regulatory environment. The SEC has clarified that certain centralized staking offerings are not classified as securities, thereby alleviating some legal uncertainties that previously deterred institutional participation.
Despite the absence of a staking-specific ETF in the U.S. market, this regulatory evolution has already led many investors to engage further. For numerous stakeholders, it has dispelled worries about potential legal complications arising from staking with exchanges.
Price Is Quiet, But That Might Not Last
Despite the increase in staking and long-term holding, ETH’s price has recently come under pressure, dipping to around $2,534 amidst geopolitical tensions, reflecting more than a 9% decrease for the week, though it is still up 6.5% compared to last month.
Many analysts are monitoring for a golden cross, an indicator where the 50-day moving average rises above the 200-day average, which historically has signaled strong price movements.
With more ETH being withdrawn from the market, even a slight rise in demand could rapidly influence prices.
Long-Term Holders Aren’t Letting Go
The unprecedented volume of long-term ETH holdings indicates many investors are not eager to sell, showing confidence in Ethereum’s future. Factors contributing to this include stable proof-of-stake yields, ranging from 4% to 6% annually, and new staking protocols like EigenLayer that offer additional passive income opportunities without relinquishing asset control.
What Comes Next
With nearly one-third of the ETH supply locked in staking and even more idle in long-term wallets, trading liquidity is diminishing swiftly. This trend sets the stage for significant price movements if demand increases. Upcoming focal points include developments around the golden cross, actions from the SEC on a staking ETF, and the behavior of ETH whales.
Ethereum is not currently making headlines regarding its price, but significant underlying changes could shape market trends for the rest of the year.
