Ethereum Staked Supply Hits Record 41.4M ETH as 1.4M ETH Locked in One Week

Ethereum's total staked supply has climbed to a new all-time high of 41.4 million ETH, representing approximately 34% of the total ETH supply, according to on-chain data. Since Ethereum completed its transition to Proof of Stake in September 2022, staked ETH has played a central role in network security — validators lock up ETH to process transactions and secure the network while earning rewards. Over the past week alone, more than 1.4 million ETH have moved into staking, further reducing the amount of ETH readily available on the open market. The sustained net inflows are notable given that staking withdrawals have been possible since the Shanghai upgrade in April 2023, yet deposits continue to outpace exits.

The trend is visible across both institutional and large individual participants. Recent Lookonchain data shows that Tom Lee's BitMine staked an additional 150,120 ETH (approximately $278 million), bringing its total staked holdings to 5.07 million ETH worth roughly $9.38 billion — about 87.4% of its total ETH holdings. Whale wallets are pursuing a similar strategy. One wallet withdrew another 19,000 ETH and staked it immediately; over the past three weeks, the same wallet has withdrawn and staked a cumulative 112,000 ETH valued at more than $208 million.

As more ETH is locked in staking, the liquid supply available for trading contracts. While liquid staking derivatives such as Lido's stETH offer participants some flexibility by tokenizing staked positions, a significant portion of staked ETH remains committed, reducing actively traded supply. With fewer coins circulating, market liquidity tightens, meaning that even relatively modest buying or selling pressure can exert a proportionally larger impact on price.

ETH is up more than 18% so far in Q3, a rally that some market observers attribute in part to the shrinking liquid supply.

Broader Crypto Liquidity Under Pressure

The surge in Ethereum staking coincides with broader signs of tightening liquidity across the cryptocurrency market.

The stablecoin sector is potentially entering its weakest quarter on record. STABLE.C — a measure of total stablecoin market capitalization — has declined 1.6% this quarter, its worst quarterly performance to date. The drawdown coincides with more than $6 billion in liquidity exiting the crypto market.

Morgan Stanley downgraded Circle to Underweight and reduced its price target from $106 to $38, citing slower USDC growth and increasing pressure on reserve income.

On-chain data reflects this broader slowdown. Daily spot trading volume across 44 major exchanges fell to approximately $15 billion last week — its lowest level of the year and nearly 70% below the January peak. Average daily trading volume has dropped roughly 50% since December 2025 to about $20 billion.

Ethereum's Role as a Market Signal

With crypto trading activity decelerating and stablecoin liquidity contracting, liquidity conditions across the broader market may remain constrained. Ethereum's accelerating staking activity compounds this dynamic by reducing the ETH available for active trading, which can leave order books thinner and prices more sensitive to individual transactions.

Despite the liquidity headwinds, ETH continues to outperform the broader market with its 18%+ quarterly gain, suggesting that investors are concentrating capital in the asset. Whether Ethereum's staking growth and price strength will continue positioning it as a key barometer for broader crypto market performance remains an open question for market participants.

Sources: CryptoNews.net | AMBCrypto