36.6 Million ETH Crosses the 30% Line
Ethereum's staking ratio has surpassed 30% of total circulating supply for the first time, according to data from Token Terminal. Approximately 36.6 million ETH, worth roughly $120 billion at current prices, is now locked across validators, liquid staking protocols, and institutional custody. The milestone was first flagged by Cointelegraph on February 11, citing on-chain data that confirmed the network had crossed the threshold.
This is not a sudden spike. Staking participation has climbed steadily from under 15% in early 2023 to this new record, driven by a combination of institutional treasury strategies, spot ETF developments, and the maturation of liquid staking infrastructure. The validator exit queue, which surged to 2.67 million ETH at its September 2025 peak, has collapsed to near-zero, signaling that stakers are staying put.
Why 30% Changes the Supply Math
Every ETH staked is ETH removed from active circulation. At 30%, roughly one in three ether tokens is no longer available on exchanges or in trading wallets. This creates what analysts describe as a structural liquidity squeeze: exchange supply thins, order books get shallower, and price movements in either direction become more volatile.
The dynamic is fundamentally different from a whale accumulation event. Stakers commit capital for extended periods, often months or years, in exchange for network rewards currently averaging around 3.5% to 4% APY. Unlike a speculative hold, staked ETH is actively securing the network and earning yield, which makes unstaking decisions more deliberate and less reactive to short-term price swings.
For context, Bitcoin's illiquid supply (coins that haven't moved in over a year) hovers around 70%, but that metric captures dormant wallets, lost keys, and long-term holders passively sitting. Ethereum's 30% is capital that has been explicitly and actively committed to a protocol function, a distinction that makes the supply reduction more predictable and durable.
The Institutional Engine Behind the Growth
Institutions are no longer tiptoeing into Ethereum staking. Bitmine, one of the largest on-chain staking entities, holds 2.58 million ETH in staked positions worth approximately $7.67 billion, representing roughly 61% of its total Ethereum holdings. Its most recent addition of 250,912 ETH (about $745 million) underscores the scale of institutional commitment.
BlackRock has registered the "iShares Staked Ethereum Trust" in Delaware, positioning itself to offer staking yield through a regulated ETF wrapper. Grayscale and REX-Osprey have already received authorization to include staking rewards in their Ethereum ETF products. The average annual yield of 3.95% cited in these filings may look modest compared to DeFi rates, but for institutional allocators accustomed to money market returns, it represents a compelling risk-adjusted opportunity on a blue-chip crypto asset.
The validator set now includes roughly 900,000 active validators. New validators continue to enter the queue, with the entry mechanism adding nodes progressively every 6.4 minutes to prevent network destabilization.
Liquid Staking Dominates the Landscape
Liquid staking protocols account for 31.1% of all staked ETH, making them the single largest category of staking infrastructure. Lido remains the dominant player with 8.72 million ETH under management, capturing a 24.2% market share within the staking ecosystem. Its recent deployment of Lido V3 introduced stVaults, enabling customized validator configurations for institutional strategies while maintaining access to DeFi composability.
Rocket Pool, Frax Ether, and Coinbase's cbETH round out the liquid staking field, each offering different trade-offs between decentralization, yield optimization, and regulatory compliance. The growth of liquid staking has been critical to pushing the 30% threshold because it eliminates the liquidity penalty that traditionally discouraged staking. Holders can stake their ETH and still use derivative tokens (stETH, rETH, cbETH) as collateral in lending protocols, liquidity pools, and even crypto card top-ups.
This composability has effectively turned staked ETH into a productive asset that participates in both network security and DeFi simultaneously, something that was architecturally impossible before liquid staking matured.
What ETH Holders Should Watch
The most immediate implication is supply scarcity during demand events. If spot ETF inflows accelerate or a narrative-driven rally pulls new capital into ETH, the available liquid supply is now meaningfully smaller than it was a year ago. Thinner order books can amplify upside moves, but they can just as easily deepen corrections when sellers need liquidity.
Staking yield compression is the second factor to monitor. As more ETH enters the staking pool, per-validator rewards decrease. The current 3.5% to 4% APY range could drift lower if participation continues climbing toward 35% or 40%. For yield-focused strategies, this means liquid staking derivatives that also capture MEV (maximal extractable value) and priority fees may become more attractive than vanilla solo staking.
The validator exit queue remains a key health indicator. Its current near-zero state suggests strong conviction among existing stakers. A sudden spike in the exit queue would signal changing sentiment and potential sell pressure from unlocked ETH re-entering the market.
The Broader Ecosystem Ripple Effect
Ethereum's 30% staking ratio reinforces its position as the most capital-efficient proof-of-stake network by dollar value locked. The $120 billion in staked assets dwarfs every other PoS chain's security budget, creating a moat that makes 51% attacks prohibitively expensive.
For crypto card users and DeFi participants, the staking milestone matters because it deepens the yield infrastructure that underpins many card reward programs. Cards offering cashback in ETH or staking-linked rewards benefit from a healthy, well-secured network where yield generation is predictable and sustainable.
The institutional convergence around staking also blurs the line between traditional finance and on-chain participation. When BlackRock offers staking yield through an ETF wrapper, the same mechanics that power DeFi protocols become accessible to retirement accounts and institutional portfolios. This normalization could drive the next wave of capital into Ethereum's staking ecosystem, pushing the ratio even higher.
FAQ
What does a 30% staking ratio mean for Ethereum? It means 30% of all circulating ETH, roughly 36.6 million tokens worth $120 billion, is locked in validator contracts. This ETH is removed from active trading supply and is securing the network in exchange for yield rewards.
Does staking reduce Ethereum's circulating supply? Yes. Staked ETH cannot be freely traded until it is unstaked, which involves a withdrawal queue. At 30%, approximately one-third of all ETH is effectively illiquid, thinning exchange order books and potentially amplifying price volatility.
What yield does Ethereum staking currently pay? Solo validators and liquid staking protocols currently earn between 3.5% and 4% APY, though this decreases as more ETH enters the staking pool. Some protocols capture additional MEV and priority fees that can push effective yields slightly higher.
Can I stake ETH through a crypto card platform? Several platforms offer staking access. Crypto.com requires CRO staking for card tiers. Nexo offers ETH earn programs. Liquid staking tokens like stETH and cbETH can also be used as collateral on various DeFi platforms linked to card products.
Overview
Ethereum's staking ratio has crossed 30% of total supply for the first time, with 36.6 million ETH worth approximately $120 billion now locked in validators and liquid staking protocols. Institutional players like Bitmine (2.58M ETH staked) and incoming ETF products from BlackRock, Grayscale, and REX-Osprey are accelerating participation. Lido dominates liquid staking with a 24.2% market share and 8.72 million ETH. The milestone creates a structural supply squeeze that reduces exchange liquidity, compresses staking yields, and reinforces Ethereum's position as the most capital-secure proof-of-stake network. For ETH holders, the key watchpoints are yield compression as participation grows, the validator exit queue as a sentiment indicator, and the impact of thinner order books on price volatility during demand events.
Recommended Reading
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