Ethereum has entered a new era. The world’s second-largest blockchain has surpassed a historic threshold: more than 36.6 million ETH are now staked, pushing the network to an unprecedented level of decentralization and capital commitment.
Fresh on-chain data from Validator Queue at the end of January confirms that over 30% of Ethereum’s entire supply is now locked in staking contracts, a symbolic and structural shift powered largely by surging institutional participation.
A Wave of Institutional Confidence
What was once the domain of crypto-native users has rapidly become a battleground for major financial players.
Bitmine, a key example of this shift, recently increased its staking position by more than 250,000 ETH, bringing its total to 2.58 million ETH. Valued at roughly $7.67 billion, the company now has 61% of its ETH holdings locked in validators, a clear signal of its long-term bet on the network’s future.
This staking boom neatly aligns with the rollout of Lido V3, a major upgrade offering stVaults: isolated, customizable staking environments designed specifically for sophisticated teams and institutional-grade setups. These vaults give large players access to Ethereum’s staking yield while retaining flexibility and liquidity via Lido’s deep DeFi integrations.
At the same time, traditional finance continues to march into Ethereum territory. BlackRock, the world’s largest asset manager, has registered the iShares Staked Ethereum Trust in Delaware, a procedural but significant step toward offering ETH staking exposure through regulated investment products. Meanwhile, firms like Grayscale and REX-Osprey have already secured approval to incorporate staking into their Ethereum ETFs.
With an average current yield around 3.95%, these products offer something rare in traditional markets: exposure to a high-growth asset and a reliable passive income stream.
Security Strengthened, But Liquidity Questions Rise
Ethereum’s rising staking ratio has a clear upside: the network becomes significantly more secure. The more ETH locked in validators, the more costly it becomes for any actor to mount a 51% attack.
Ethereum’s queueing system reinforces this stability. Validator entries and exits occur gradually about every 6.4 minutes, preventing abrupt shifts in participation. Vitalik Buterin has repeatedly defended these withdrawal delays as a safeguard against sudden, destabilizing mass exits.
Back in November 2025, the network saw 2.45 million ETH waiting to withdraw and 1.5 million ETH waiting to enter, a perfect example of the buffers designed to keep the system steady.
But the flip side is increasingly visible:
– Less liquid ETH on the open market
– More value locked for long durations
– Higher reliance on staking providers
Nearly one-third of all ETH is now inaccessible for trading. And while native stakers enjoy full control of their keys, they face longer withdrawal times and slashing risks if their validators misbehave, factors institutions seem more comfortable managing than retail investors.
A Network in Transition
The crossing of the 30% staking threshold marks more than a statistical milestone. It represents a structural evolution in how Ethereum is used and who shapes its future.
Institutions are no longer observers.
They are becoming core operators of Ethereum’s security layer, attracted by its dominance in tokenized assets, stablecoins, and enterprise-grade smart contracts.
For now, confidence is high and capital is flowing in.
But the coming months will reveal whether this aggressive locking of supply fuels Ethereum’s price or whether tightening liquidity introduces new pressures for heavily staked entities.
What’s certain is that Ethereum’s staking era is no longer emerging. It has arrived, and it is transforming the market from within.
