Ethereum staking climbed to a record 41.7 million ETH in 2026, even as the asset's market price fell sharply during the same period. The locked balance now accounts for approximately 34.5% of Ethereum's 120.7 million circulating supply, demonstrating that deposits continued to grow under weaker market conditions. Staking has served as Ethereum's consensus mechanism since the network completed its transition from Proof of Work to Proof of Stake — known as the Merge — in September 2022, replacing miners with validators who lock ETH to secure the network.

Bitfinex shared CryptoQuant data on X on August 10, showing that the staked balance had remained near 36 million ETH through late 2025. Deposits began trending upward in February and accelerated notably between June and August. The ability to withdraw staked ETH, enabled by the Shanghai upgrade in April 2023, has allowed participants to enter and exit positions more flexibly, contributing to a broader base of depositors.

Staking Growth Amid Price Decline

At the time Bitfinex published the data, Ethereum was trading at $1,900 — roughly 44% below its January level of $3,400. Over the same period, the total staked balance grew from 36.2 million ETH to 41.7 million ETH in under seven months.

Validators earn newly issued ETH for proposing blocks and validating transactions, and can also collect priority fees and maximum extractable value (MEV). Running a validator requires a minimum deposit of 32 ETH, though liquid staking protocols and exchange-based services have lowered the barrier to participation by allowing smaller holders to stake through pooled arrangements. Some stakers reinvest these rewards, compounding their balances even as ETH's price declines. However, individual yields decrease as the overall staking balance grows, since Ethereum distributes rewards across an expanding pool of participants.

Corporate Treasury Participation

Treasury-focused companies have been significant contributors to the staking increase. As of July 12, BitMine had staked approximately 4.9 million ETH, representing about 85% of its total Ethereum holdings, according to an SEC filing. For the quarter ending May 31, BitMine reported $45.7 million in earnings from staking and validation operations. Chairman Tom Lee estimated that if BitMine staked all of its treasury holdings, annual income could reach approximately $284 million.

SharpLink has also committed the majority of its ETH treasury to staking, a strategy that has continued generating token rewards for the company. However, low market prices contributed to a loss of $394.3 million in the second quarter, according to the company's financial results.

SharpLink CEO Joseph Chalom has argued that native yield is a key attraction for institutional participants and serves as a benchmark in decentralized finance. The trend of public companies allocating ETH treasuries to staking mirrors a broader institutional shift toward treating digital assets as productive balance-sheet holdings rather than passive stores of value.

EIP-8363 and the Issuance Debate

The record staking levels have reignited discussion around Ethereum's reward mechanism. Some community members contend that beyond a certain staking ratio, additional deposits do not meaningfully enhance network security.

EIP-8363, known as Tapered Issuance Burn, proposes burning an increasing share of consensus rewards as the staking ratio rises. Under this proposal, issuance rewards would reach zero once approximately 50% of all ETH is staked. The proposal's creators argue that rewards should taper as the marginal security benefit of additional deposits diminishes. The proposal has not been approved for implementation in any Ethereum upgrade as of the time of reporting. The outcome of this debate carries implications for Ethereum's monetary policy, as it would determine whether the network trends toward inflationary issuance or continued deflationary pressure depending on staking participation.

US-Listed Products Expand Staking Access

Regulated investment products have broadened access to ETH staking yields in the United States. In January, Grayscale distributed $9.4 million in dividends to qualified ETHE shareholders, marking the first such payment from a U.S.-listed Ethereum product.

Morgan Stanley also incorporated staking capabilities into its filing for an Ethereum ETF. According to the filing, 3.64 million ETH were awaiting validation as of May 18, implying a potential lock-up period of approximately 63 days. The expansion of staking into regulated vehicles means that conventional investors can now access ETH yield without managing validators directly, narrowing the operational gap between crypto-native and traditional finance participants.

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