Although the price of ETH has experienced a difficult month, Ethereum’s most dedicated investors remain unbothered.
A fresh all-time high has been reached as over a third of all ether is currently locked up in staking. Token Terminal figures show that Ethereum’s staking rate has risen to 36.3% of the total supply, surpassing the prior peak of 32.4% recorded in June 2026.
This represents an increase of nearly four percentage points over a span of just five months, transpiring amidst a declining market.
Why Ethereum Staking Matters
Beyond functioning as a yield-generation tool, staking requires validators to lock up ETH to validate transactions, suggest new blocks, and sustain Ethereum’s proof-of-stake mechanism. A higher volume of staked ETH raises the cost of executing a network attack.
This dynamic additionally impacts market supply. Because staked ETH cannot be immediately liquidated, every coin entering the staking contract is removed from the pool of coins readily accessible to traders.
With upwards of one-third of the supply now committed, a substantial portion of ether is effectively removed from active trading circulation.
Demand To Stake Is Still Growing
Validator queues indicate that this momentum shows no signs of abating. Data indicates that approximately 2.42 million ETH is presently queued to begin staking, accompanied by an estimated waiting period of roughly 42 days.
Conversely, the exit queue remains entirely empty. This demonstrates that significantly more ETH is attempting to enter the staking ecosystem than to withdraw from it.
This marks a stark turnaround from late 2025. During September of that year, the exit backlog reached a peak near 2.67 million ETH before dropping down to near zero by January 2026.
At present, the network maintains approximately 897,000 active validators, and stakers are receiving an annualized yield of about 2.6%.
Institutions Are Leading The Charge
Large-scale entities have been responsible for a significant share of this expansion. Ethereum treasury company BitMine has consistently expanded its staked holdings, while the integration of staking capabilities into spot Ether ETFs has enabled traditional investors to generate yield on their assets.
As previously highlighted earlier this year, organizations like BitMine and Grayscale spearheaded the push toward record staking levels, a trajectory that has only intensified since.
Historical precedent additionally provides reassurance. CryptoQuant analysts at XWIN Research Japan observed that Ethereum staking participation continued to expand even throughout the severe market downturns of 2022 and 2023.
Staking Grows While ETH Price Lags
The disparity with current price action is notable. Trading around $2,000, ETH has lost roughly 18% over the past month, pressured by Bitcoin falling under $70,000 and capital outflows from spot Ether ETFs.
Conversely, staking metrics convey an alternative narrative. While short-term speculators exit their positions, long-term participants are committing more ETH than at any prior point. This divergence between valuation and network engagement is precisely what certain investors monitor closely as liquid supply quietly constricts beneath a sluggish price chart.
This behavior also mirrors additional indicators appearing around these levels, such as an Ethereum indicator historically known for accurately identifying market bottoms. Should market demand recover, a reduced pool of liquid ETH has the potential to magnify upward price movement. For additional updates, follow the latest Ethereum news.
What do you think?
Is record Ethereum staking a sign that ETH is quietly building a bottom, or will price keep ignoring the network’s growth for now?
Written by
Yuki Yamamoto
