Ethereum Staked Hits All-Time High of 35M After SEC Clarity

Ethereum Staking Hits New All-Time High as SEC Clarifies Regulatory Stance

  • Staked Ethereum surpassed 35 million, reaching a new record.
  • This amount equals 28.3% of Ethereum’s circulating supply.
  • SEC clarified that staking is not a securities transaction.
  • The number of Ethereum network validators rose to 1.1 million.
  • The value of staked Ethereum totals $90 billion at current prices.

The total amount of Ethereum staked on its network exceeded 35 million on Tuesday, marking an all-time high after the U.S. Securities and Exchange Commission provided clarification on staking regulations. This milestone represents 28.3% of the circulating supply, according to data from a Dune dashboard by Dragonfly Capital data scientist Hildebert Moulié.

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The number of Ethereum validators—participants who process and confirm transactions—also reached a record 1.1 million. At the current market price of $2,500 per Ethereum, the total value of assets staked is about $90 billion, reported CoinGecko.

According to Carlos Guzman, a research analyst at GSR, the increase in staked Ethereum reflects growing confidence in the asset. “It dovetails with market expectations around ETH turning more optimistic and positive,” he stated to Decrypt. Guzman added that investors may feel more secure holding Ethereum, expecting its price to rise.

At the end of last month, the SEC stated that it does not classify staking activities as securities transactions. The regulator said that earlier uncertainty had “artificially constrained participation in network consensus and undermined the decentralization […] of proof-of-stake blockchains.” This clarifies the legal standing for both individual and institutional participation, as asset managers are now considering ways to offer staking rewards in exchange-traded funds. Previously, former SEC Chair Gary Gensler had suggested proof-of-stake assets might be classified as securities.

Liquid staking platforms such as Lido allow users to lock ETH and receive tokens tied to Ethereum’s price, enabling them to earn rewards without giving up liquidity. Galaxy Digital recently announced plans to expand staking options for institutional clients.

The amount of Ethereum staked also impacts the creation rate, or issuance, of new coins. According to Etherealize, as more Ethereum is staked, the inflation rate rises more slowly, capped at a maximum of 1.51% even if all circulating supply is staked and none is burned; see their recent research report for details.

Since its switch to proof-of-stake in 2022, known as the Merge, Ethereum relies on validators who lock up assets to help verify transactions, instead of using energy-intensive mining like Bitcoin.

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In a recent example of corporate adoption, SharpLink Gaming, an online gambling marketer, reported deploying about 167,000 Ethereum—worth around $418 million—into staking and liquid staking as part of its treasury strategy.

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