Ethereum Staking Surpasses 35M ETH with Institutional Uptake Driving Supply Squeeze
Ethereum staking has exceeded 35 million ETH, locking up over 28% of the circulating supply. Retail and institutional investors contributed to the surge, with 500,000 ETH added in early June alone. Liquid staking leader Lido controls 8.75 million ETH, while centralized exchanges validate another 15%. Nasdaq-listed SharpLink Gaming has staked more than 95% of its $463 million ETH treasury, making it the second-largest known holder after the Ethereum Foundation. At a roughly 3% annual yield and amid favorable SEC guidance, institutional demand is rising. The reduced ETH supply on exchanges may tighten liquidity, potentially applying bullish price pressure in both the short and long term, despite ongoing decentralization concerns.
Bullish
The rapid increase in Ethereum staking reduces ETH available for trading on exchanges. Rising institutional demand—highlighted by SharpLink’s heavy staking—and a stable ~3% yield create upward price pressure. Liquid supply constraints, driven by both retail and institutional lock-ups, point to tighter market conditions. While decentralization concerns persist, the dominant effect is a supply squeeze that traditionally supports a bullish outlook for ETH in both the short and long term.