30% of ETH Now Staked — Ethereum Hits Major Network Security Milestone
Staked ETH has reached 30% of Ethereum’s circulating supply (about 36 million ETH), marking a record high and a notable boost to network security. The milestone, confirmed on January 18, 2025, follows steady post‑Merge staking growth and accelerated institutional participation through 2024. The current average staking yield is roughly 3.5–4.2% annually; liquid staking derivatives (notably stETH and rETH) account for about 28% of staked ETH. The Shanghai upgrade (April 2023) enabled withdrawals, removing a major barrier and supporting continued inflows. Analysts note the 30% staking ratio raises the theoretical cost of large-scale network attacks and contributes to effective supply reduction, reinforcing deflationary pressure when combined with fee burning. ETH price was around $3,214.79 with a 3.8% decline on the day of the report—market watchers attribute that move to wider crypto and macro factors rather than staking alone. Developers plan further validator and efficiency upgrades (Prague/Electra/Pectra), and many analysts project staked ETH could reach 35–40% by late 2025 as institutional staking expands. Key takeaways for traders: higher staking penetration strengthens long‑term fundamental security and supply dynamics (potentially bullish), but short‑term price correlation is weak — volatility will still respond to macro, regulatory, and sentiment drivers.
Bullish
The 30% staked ETH milestone is fundamentally bullish. Higher staking penetration reduces liquid supply, increases the economic cost of attacks, and strengthens narrative around Ethereum’s security and scarcity — all positive long‑term drivers for ETH price. Historical patterns after protocol improvements (e.g., Shanghai withdrawals) show staking inflows can support multi‑month appreciation as circulating supply tightens and institutional products scale. However, the immediate price response may remain muted or negative due to broader macro pressures, regulatory news, or profit‑taking; past events show staking announcements often have limited short‑term impact. Traders should therefore view this news as a medium‑ to long‑term bullish fundamental, but remain cautious for short‑term volatility driven by macroeconomic data, regulatory developments, or liquidity events related to liquid staking tokens. Risk management: monitor staking inflows, liquid staking derivative supply (stETH/rETH), validator exit queues, and macro/regulatory headlines for event‑driven moves.