Ethereum has reached a major milestone in its transition to a proof-of-stake (PoS) ecosystem, with over 35 million ETH now staked, according to data from Dune Analytics. This figure represents more than 28% of the total circulating supply, creating a noticeable reduction in the liquid supply available on crypto exchanges. As Ethereum’s staking economy grows, investors are shifting from active trading to passive yield strategies, accelerating a supply squeeze that could have long-term implications for the market.
In recent weeks, the trend has intensified. Ethereum staking activity, once driven primarily by individual validators and DeFi protocols, is now seeing increased participation from corporate treasuries and institutional players. With more Ether locked away and unavailable for trading, analysts are beginning to warn of a liquidity crunch that may influence ETH’s price dynamics well into the future.
While retail participation in Ethereum staking has been strong, the new catalyst appears to be a wave of institutional accumulation. Nasdaq-listed SharpLink Gaming is one such example. On June 13, the company disclosed it had acquired $463 million worth of ETH, making it the second-largest known Ethereum holder after the Ethereum Foundation. Notably, SharpLink also staked over 95% of its holdings, opting to earn yield while supporting the security of the Ethereum network.
This move signals a broader shift in how corporations are viewing digital assets. Once seen as speculative bets, tokens like ETH are increasingly being treated as long-term treasury assets, similar to gold or bonds. The roughly 3% yield offered by staking, combined with Ethereum’s position as the backbone of decentralized finance and Web3 infrastructure, makes it an attractive alternative for institutional capital.
SharpLink’s strategy is part of a growing trend. A recent CryptoQuant report noted that more than 500,000 ETH was staked in the first half of June 2025 alone, a significant surge compared to prior months. The pace of this growth suggests that institutional interest in Ethereum staking is just beginning.
Currently, Lido Finance remains the largest staking entity, managing 8.75 million ETH, or about 25% of all staked tokens. Centralized exchanges like Coinbase and Binance also play a significant role, collectively validating around 15% of the network. However, these on-chain metrics only tell part of the story.
The most critical shift is happening off-chain. Corporate treasuries and funds are accumulating ETH without necessarily interacting with public wallets until they stake. These holdings aren’t always visible in real time, but their impact on circulating supply is profound. As these entities lock their ETH into staking contracts for long-term yield, the available liquidity on exchanges is drying up.
This change could have a meaningful effect on price volatility, as smaller pools of ETH remain available for spot trading. Liquidity crunches can lead to exaggerated price moves—both up and down—depending on market sentiment and macroeconomic conditions.
One of the main barriers to institutional staking has historically been regulatory uncertainty. However, the SEC’s May 2024 guidance provided much-needed clarity, stating that protocol-level staking does not qualify as securities activity. This clarification effectively gave institutions the green light to participate in Ethereum staking without fear of legal blowback.
As a result, more corporate actors are now willing to convert part of their balance sheets into staking positions. This shift is helping Ethereum evolve from a retail-led network to one with significant institutional backing. Analysts believe this structural transformation could stabilize Ethereum’s long-term value, especially in the face of increasing demand and shrinking supply.
With over 35 million ETH staked, the liquid supply on exchanges is shrinking quickly. Ethereum currently has a circulating supply of just over 120 million tokens, which means more than a quarter of all ETH is now locked into long-term staking contracts. This doesn’t just reflect investor confidence in Ethereum—it also points to a brewing supply squeeze.
Unlike Bitcoin, which has a fixed supply and halving events, Ethereum’s supply dynamics are increasingly being shaped by human behavior and economic incentives. As more investors favor passive yield over active trading, liquidity tightens. This trend may support price appreciation over time, especially if demand continues to rise.
According to analysts, the continued growth of Ethereum staking—combined with the expanding role of ETH in decentralized finance, NFTs, and enterprise adoption—could result in higher demand with limited availability. That’s a classic setup for long-term price pressure to the upside, even amid short-term market corrections.
Ethereum’s staking economy is entering a new phase. With over 35 million ETH now locked, the network is displaying signs of increased maturity, and institutional confidence is beginning to match that of the crypto-native community. As liquidity tightens and staking becomes a core strategy for companies and investors alike, ETH may face a significant supply squeeze in the coming quarters.
The key takeaway? Ethereum is no longer just a speculative play. It’s fast becoming a strategic asset—one that pays yield, powers next-generation applications, and now, earns a permanent place on corporate balance sheets.
Steven is an explorer by heart – both in the physical and the digital realm. A traveler, Steven continues to visit new places throughout the year in the physical world, while in the digital realm has been instrumental in a number of Kickstarter projects. Technology attracts Steven and through his business acumen has gained financial profits as well as fame in his business niche. Send a tip to: 0x200294f120Cd883DE8f565a5D0C9a1EE4FB1b4E9
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