Ethereum Staking Surges Past 35M ETH as Fusaka Upgrade Finalized
Ethereum staking has climbed above 35 million ETH, representing 28.3% of circulating supply and roughly $84 billion locked. Growth is driven mainly by large wallets holding 1,000–10,000 ETH and long-term accumulation addresses. Analysts highlight four key impacts: tighter ETH liquidity that may support price gains; a decline in staking reward rates as more ETH locks up; enhanced network security under proof-of-stake; and rising institutional and regulatory backing, bolstered by the SEC’s 2024 stance on protocol-level staking and the prospect of spot staking ETFs. Centralization risk persists, with Lido controlling about 25% of staked ETH and Coinbase and Binance holding 7.5% each. Meanwhile, Ethereum core developers have finalized the Fusaka upgrade scope—13 EIPs including PeerDAS (EIP-7594) and the CLZ opcode (EIP-7939)—and scheduled Devnet 2 for June 23 to boost throughput, cut gas costs, and strengthen network resilience.
Bullish
The surge in Ethereum staking reduces available ETH supply, tightening liquidity and supporting potential price gains in the short term. Long-term, network security and decentralization improve under proof-of-stake, while institutional and regulatory endorsement—especially the SEC’s positive stance and anticipated spot staking ETFs—draws more capital into ETH staking. The finalized Fusaka upgrade further boosts confidence by promising higher throughput, lower gas fees, and stronger resilience. Although concentration risk at Lido and centralized exchanges merits caution, overall drivers point to a bullish outlook for ETH.