Ethereum's staking base has climbed to an all-time high, with roughly 1.4 million ETH added to validator deposits over the past week alone. The total amount of ETH now locked in staking stands at 41.4 million, equivalent to nearly 34% of the asset's circulating supply, according to on-chain data cited by AMBCrypto.
A significant share of the recent inflow traces back to BitMine, the corporate treasury firm that has emerged as one of Ethereum's largest institutional holders. BitMine has staked 5.07 million ETH, worth an estimated $9.38 billion at current prices, which the report says accounts for roughly 87.4% of the firm's total ETH position. The company added 150,120 ETH, worth about $278 million, to its staked balance in the most recent update.
Beyond BitMine, broader whale activity has also picked up. Large holders have moved an estimated 112,000 ETH, worth around $208 million, into staking contracts over the past three weeks, including one single transaction of 19,000 ETH.
Liquidity Under Pressure
The staking surge is coinciding with a broader liquidity squeeze across crypto markets. The stablecoin market contracted by 1.6% over the past quarter, marking its worst quarterly performance on record, with more than $6 billion in liquidity exiting the market during that stretch.
Spot trading volumes have followed a similar trajectory. Daily spot volume averaged roughly $15 billion last week, down nearly 70% from the highs recorded in January. Average daily volume across the 44 exchanges tracked in the report has fallen by about 50% since December 2025, settling near $20 billion.
Circle Downgrade Adds to the Caution
Adding to the cautious tone, Morgan Stanley cut its price target on Circle, the issuer of the USDC stablecoin, from $106 to $38, citing slowing USDC growth and pressure on the company's reserve income.
Price Holds Despite the Outflows
Despite the tightening liquidity backdrop, Ethereum's price has held up relatively well, with the asset posting a Q3 rally of more than 18% and trading above $1,850. Whether that resilience continues will likely hinge on whether staking demand keeps absorbing supply faster than liquidity exits the broader market.
