Staked ETH eclipses 35m as crypto reserves fuel supply squeeze

With a record 35 million Ether now staked, liquidity is tightening as investors opt for passive yield over short-term trades. Corporate treasuries, led by firms like SharpLink, are accelerating the trend.

According to Dune Analytics data, the total amount of staked Ether (ETH) surged past 35 million tokens this week, marking a new all-time high for Ethereum’s proof-of-stake network.

This figure now accounts for over 28% of the cryptocurrency’s circulating supply of more than 120 million tokens. With more than a quarter of all Ether locked into staking contracts, the available liquid supply on exchanges is shrinking fast, and may plummet further, as the number of public companies and large institutions looking to hold rather than trade the asset continues to rise.

Who’s locking up ETH supply?

Ethereum staking has been rising steadily since the network transitioned to proof-of-stake in late 2022, but recent months have brought a sharper uptick. According to a June 18 CryptoQuant report, over 500,000 ETH was staked in the first half of June alone, pushing the total above 35 million.

Dune Analytics data shows that Lido, the leading liquid staking protocol, now controls 8.75 million ETH, or roughly a quarter of all staked tokens. Centralized exchanges like Coinbase and Binance follow, collectively validating another 15% of the network.

But the more significant shift is happening off-chain, where corporate balance sheets are quietly becoming ETH accumulation vehicles. These firms are increasingly treating Ether not just as a tech investment, but as a long-term treasury asset.

As reported by crypto.news, Nasdaq-listed SharpLink Gaming purchased $463 million worth of ETH on June 13, becoming the second-largest known holder behind the Ethereum Foundation. The company also announced it had staked over 95% of its total holdings to generate yield while contributing to Ethereum’s network security.

For companies like SharpLink, the logic behind buying and staking ETH is structural. The token offers a roughly 3% staking yield, and the SEC’s May 2024 guidance effectively greenlit institutional participation by clarifying that protocol-level staking does not fall under securities regulation.