In June 2025, Ethereum has achieved a historic milestone, with over 35 million ETH nearly 29% of its circulating supply locked in staking contracts. This record-breaking surge, driven by 500,000 ETH staked in just two weeks, signals deep investor confidence. But what does this mean for Ethereum’s price, network security, and the broader crypto market? Explore the implications of this staking boom and what lies ahead for ETH.

The cryptocurrency market, valued at $3.28 trillion, is navigating a volatile June 2025, with Ethereum (ETH) standing out due to a monumental milestone. On-chain data from CryptoQuant and Dune Analytics confirms that over 35 million ETH, worth approximately $89 billion, are now locked in Ethereum’s proof-of-stake (PoS) staking contracts, representing 28.3–29% of the circulating supply of 120.72 million ETH. With 500,000 ETH added in the first half of June alone, including a single-day record of 871,000 ETH on June 12, this staking surge underscores growing investor conviction. This article examines the drivers behind Ethereum’s staking record, its impact on price dynamics, network security, and the broader market, as well as the potential risks and opportunities.

The Staking Surge: Why 35 Million ETH Are Locked

Investor Confidence and Passive Income:

Ethereum’s transition to PoS with The Merge in 2022 incentivized staking, allowing investors to lock ETH in smart contracts to secure the network and earn passive rewards, typically 3–5% annually. The record 35 million ETH staked reflects surging trust in Ethereum’s long-term value, as noted by CryptoQuant analyst Onchainschool: “This trend indicates rising confidence and a continued drop in liquid supply.” Over 500,000 ETH added in early June, with whale wallets contributing over 800,000 tokens daily for nearly a week, highlights strategic accumulation by large investors.

Accumulation Addresses at Record Highs:

Parallel to the staking boom, accumulation addresses—wallets with no history of selling—have reached an all-time high, holding 22.8 million ETH. These “strong hands” signal long-term conviction, refusing to sell despite a 23% price decline year-to-date. This accumulation, combined with staking, reduces Ethereum’s liquid supply, potentially setting the stage for price appreciation if demand rises.

Regulatory Clarity Boosts Staking:

A recent SEC guideline, published in late May 2025, clarified that certain PoS staking activities do not require registration as securities offerings, reducing regulatory uncertainty. This has catalyzed institutional participation, with $800 million flowing into Ethereum ETFs in June alone. The regulatory tailwind, under a crypto-friendly U.S. administration, has further encouraged staking, as investors anticipate long-term stability.

Impact on Ethereum’s Price Dynamics

Reduced Liquid Supply:

With 28.3–29% of ETH locked in staking contracts, the available supply for trading has significantly decreased. This illiquidity could amplify upward price pressure if demand increases, as fewer tokens are available on exchanges. Ethereum’s price is currently $2,534, down 2% daily and 9.3% weekly, but up 6.5% over 30 days. Analysts suggest that the staking surge could support a rally to $2,720–$2,800 if ETH breaks the $2,660 resistance, though a drop below $2,500 risks testing support at $2,460.

Technical Signals:

A golden cross, where the 50-day EMA crosses above the 200-day EMA, is imminent on ETH’s daily chart, a bullish signal that preceded a 35% rally in November 2024. Analyst Bitcoinsensus identifies a multi-year bullish flag pattern, projecting a potential surge to $8,000 by 2026 if macroeconomic conditions and ETF flows align. However, bearish risks remain, with a Gravestone Doji on the weekly chart signaling potential profit-taking.

Market Sentiment:

The Crypto Fear and Greed Index at 61 (Greed) reflects cautious optimism, but ETH’s 24-hour trading volume surged 35.62% to $24.9 billion despite the price dip, indicating active trading and possible repositioning. Posts on X, like @aixbt note on June 18, highlight the massive June 12 inflow of 871,000 ETH, reinforcing bullish sentiment among on-chain observers.

Impact on Network Security and Decentralization

Enhanced Economic Security:

The $91 billion in staked ETH makes a 51% attack economically unfeasible, requiring over $46 billion to control the majority of staked tokens at current prices ($2,600). With 1.1 million active validators, Ethereum’s PoS network is highly decentralized, reducing reliance on centralized entities and bolstering resilience.

Validator Growth and Centralization Concerns:

Coinbase is Ethereum’s largest node operator, controlling 11.4% of staked ETH, followed by Lido (25.6%, 8.94 million ETH), Binance (2.65 million ETH), and Coinbase (2.59 million ETH). Decentralization purists criticize liquid staking protocols like Lido for potential centralization risks, but Coinbase’s 99.75% validator uptime and distributed operations mitigate concerns. Emerging restaking protocols, like ether.fi (2.3 million ETH, up 16% monthly), are diversifying the staking landscape, enhancing competition.

Network Upgrades:

Upgrades like The Merge, Shapella, and Dencun have accelerated staking adoption, with the Shanghai upgrade enabling withdrawals and boosting confidence. Proposed bridges between Ethereum and other layer-1s, like XRPL, could further increase validator participation and TVL, strengthening the ecosystem.

Broader Market Implications

Altcoin Rally Potential:

Ethereum’s staking milestone aligns with a broader altcoin rally, with analysts like Crypto Beast predicting 2x gains for ETH and others like Solana and SUI. The reduced liquid supply could amplify altcoin season dynamics, especially if Bitcoin ($107,000) breaks $110,000, lifting the market.

Institutional Adoption:

BlackRock’s $800 million ETF inflows and institutional interest in liquid staking via Lido (where institutions account for a significant portion of TVL) signal Ethereum’s growing role in portfolios. The SEC’s staking clarity could pave the way for staking-specific ETFs, further reducing liquid supply.

Competition and Challenges:

Ethereum faces competition from layer-1s like Solana, which offers higher throughput, and meme coins diverting speculative capital. Geopolitical tensions, such as Israel-Iran conflicts, could trigger market corrections, impacting ETH’s short-term price.

Risks and Opportunities

Bullish Opportunities:

  • Price Surge: Reduced liquid supply and ETF inflows could drive ETH to $2,800–$8,000 by 2026, per Bitcoinsensus.

  • Network Strength: The $91 billion economic security and 1.1 million validators make Ethereum nearly unassailable.

  • Institutional Growth: Regulatory clarity and staking ETFs could unlock billions in institutional capital.

Bearish Risks:

  • Price Correction: Failure to break $2,660 risks a drop to $2,460 or lower, especially if macroeconomic conditions worsen.

  • Centralization Concerns: Lido’s 25.6% market share raises long-term decentralization risks, though diversification is increasing.

  • Market Volatility: Geopolitical or regulatory shocks could disrupt the bullish trend, impacting liquid supply dynamics.

Conclusion: Ethereum’s Staking Milestone Signals Strength

Ethereum’s record-breaking 35 million ETH staked, locking nearly 29% of its supply, marks a pivotal moment in June 2025. This surge, driven by 500,000 ETH added in two weeks and 22.8 million ETH held by long-term investors, reflects deep confidence in Ethereum’s fundamentals. The reduced liquid supply could fuel a price rally to $2,800 or beyond, supported by a golden cross and ETF inflows, while $91 billion in economic security strengthens the network. Investors should monitor the $2,660 resistance, $2,460 support, and platforms like Binance for on-chain data, remaining cautious of volatility and centralization risks. As Ethereum solidifies its role as a foundational crypto asset, this staking milestone could herald a new era of growth and adoption.

Disclaimer:

This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments carry a high level of risk and volatility. Always conduct your own research (DYOR) and consult a professional financial advisor before making any investment decisions.