Ethereum staking has reached a new milestone, with over 34.6 million ETH – worth nearly $90 billion – now locked in the network’s Proof-of-Stake (PoS) consensus mechanism. This represents close to 28% of the total ETH supply, signaling renewed trust in Ethereum’s long-term viability as both a decentralized platform and a yield-generating asset.
Total ETH Supply: 120.7 million Staked ETH: 34.6 million ($90B) Staking Share: ~28% of supply
This all-time high follows Ethereum’s successful transition from Proof-of-Work (PoW) to PoS after the 2022 Merge, and comes just a month after the Pectra upgrade, the most expansive fork since that historic shift.
“This level of staking shows extreme confidence in the Ethereum network’s durability,” said Davis Richardson, Managing Partner at Paradox Public Relations.
“Even with recent changes to the team’s senior leadership, and the rise of so-called ‘ETH killers’ like Solana, Ethereum retains the highest number of developers and users on-chain.”
$ETH Staking Hits All Time High Ahead of Merge
The amount of $ETH staked on DeFi protocols is over 13.2 million $ETH staked, which is an all time high, as investors anticipate upside from the upcoming merge.https://t.co/MsEe0CQ9Pk #Ethereum pic.twitter.com/TUaSNU9fcG
— BitKE (@BitcoinKE) August 29, 2022
According to Amir Forouzani, Co-Founder of Puffer Labs, the rapid rise in staking is largely being driven by two forces:
The proliferation of liquid staking solutions like LSTs and LRTs
A sharp uptick in institutional ETH exposure
These innovations allow holders to stake ETH while maintaining liquidity and even engaging in yield-boosting strategies such as leveraging or looping on DeFi protocols – something that could be particularly attractive to African DeFi users exploring low-barrier yield farming.
“At Puffer Institutional alone, several clients are preparing to restake substantial ETH positions,” said Forouzani.
“We expect the total staked amount to climb further as institutional adoption accelerates.
Yield-bearing derivatives such as liquid staking tokens (LSTs) and liquid restaking tokens (LRTs) let holders keep their ETH liquid while using it in leverage and looping strategies on lending protocols, amplifying returns.”
$ETH staking yields depend on the issuer but can range from 2% to around 4%.
Adding fuel to the fire, BlackRock – the world’s largest asset manager – recently made a bold move:
Sold over $560 million in Bitcoin
Acquired more than $100 million in ETH
ETH holdings now included in the firm’s iShares Ethereum Trust (ETHA)
This shift is seen as part of a growing institutional appetite for Ethereum’s yield potential – something Bitcoin doesn’t currently offer, especially with its fixed supply and lack of smart contract functionality.
A recent legal ruling on staking may also have provided impetus to the ecosystem for staking.
The Securities and Exchange Commission of the United States Division of Corporation Finance clarified that “Protocol Staking Activities” – including self‑staking, self‑custodial staking (delegation), and custodial staking – do not involve the offer or sale of securities under the Securities Act or Exchange Act.
This decision rests on the Howey test:
Staking is considered a non‑managerial or ministerial activity tied to network protocol rules, not a managed enterprise.
The statement also covers ancillary services like slashing protection, early withdrawal mechanisms, alternative rewards schedules, and asset pooling – these, too, are not considered securities activities.
Ethereum Price Outlook
As of writing: ETH Price: ~$2,700 Daily Change: +8% Monthly Change: +5%
Ethereum’s staking surge could reduce circulating supply and ease short-term sell pressure.
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