BitMine Stakes $1B+ in ETH as Firms Ramp Up Ethereum Staking, Shrinking Liquid Supply
Large corporate ETH holders are increasingly staking their ether to earn 3–5% APY on Ethereum’s proof-of-stake network, removing substantial supply from public markets. Lookonchain data shows BitMine Immersion Technologies staked 342,560 ETH (over $1 billion) within two days, pushing the validator entry queue to 12 days 20 hours with 739,824 ETH waiting to stake versus an exit queue of 6 days 2 hours (349,867 ETH). Other major holders — including SharpLink Gaming, Bit Digital and The Ether Machine — have staked most or all of their on-chain treasuries; SharpLink reported 9,701 ETH (~$29M) in staking rewards and The Ether Machine says it fully staked its $1.49B ETH treasury. Nansen on-chain flows show mixed trading behavior: ’smart money’ wallets sold roughly $4.26M of spot ETH across 53 wallets last week, while whale wallets and public figures bought about $11.6M and $6M respectively; newly created wallets also bought ($517k+). The net effect: rising institutional staking demand is tightening liquid ETH supply, a factor supportive for long-term price appreciation, while divergent activity across trader cohorts could increase short-term volatility. Traders should monitor validator queue lengths, staking reward yields, on-chain flow metrics (smart-money vs whale activity), and liquid supply trends to gauge short-term liquidity risk and longer-term supply-driven bullish pressure on ETH.
Bullish
Net institutional staking removes substantial ETH from liquid markets, which historically exerts upward pressure on price over the medium to long term by tightening sellable supply. BitMine’s rapid 342,560 ETH stake and other firms fully or largely staking treasuries materially increase locked supply and lengthen the validator entry queue, underscoring persistent staking demand. However, short-term price action may remain volatile: smart-money wallets recently reduced spot ETH holdings while whales and public figures increased purchases, creating offsetting flows. Traders should expect supply-driven bullish pressure over time but watch on-chain flow indicators (smart-money vs whale activity), staking reward rates, and validator queue dynamics for signs of short-term liquidity stress or sell-side reactions that could trigger price swings. In sum: structural bullish for ETH’s supply dynamics, with potential for near-term volatility driven by divergent trader cohorts and liquidity shifts.