Ethereum network activity has reached unprecedented levels, with daily transactions surging to 1.74 million—surpassing the previous record of 1.65 million set in May 2021. A significant driver behind this growth is the escalating trend of ETH staking, which has now exceeded 36 million ETH, representing roughly 30% of the total supply. This substantial stake accumulation has tightened market liquidity, exerting upward pressure on prices.
Recently, the U.S. Securities and Exchange Commission (SEC) provided important regulatory clarity by stating that certain types of liquid staking and staking receipt tokens will not be classified as securities under the Securities Act of 1933, provided specific conditions are met. This development mitigates a major regulatory risk for institutional investors and decentralized finance (DeFi) protocols, paving the way for broader adoption of liquid staking products. Consequently, the circulating supply of ETH diminishes further, supporting positive price momentum.
Moreover, several prominent firms—including BitMine Immersion Technologies, SharpLink Gaming, and The Ether Machine—have begun augmenting their crypto treasuries with substantial ETH holdings, collectively amounting to billions of dollars. This institutional accumulation further constricts the liquid supply of Ethereum and signals growing confidence in its long-term value proposition.
Ethereum co-founder Vitalik Buterin has expressed support for strengthening ETH treasuries but has also cautioned against excessive leverage, warning that over-borrowing could undermine Ethereum’s success. He emphasized that should treasuries evolve into precarious financial instruments, the resulting risks might have adverse effects on the ecosystem.
From a price perspective, ETH has rebounded impressively from its April lows of $1,470, appreciating approximately 163% to reach near $3,909. The combination of rising staking demand and constrained liquidity has bolstered investor confidence, suggesting potential for further price appreciation. Overall, record-breaking network activity, regulatory clarity, and growing institutional investment collectively mark a new phase of growth and maturation for Ethereum.
Source: binance
