Ethereum Transactions Hit Record High as Staking, SEC Clarity Fuel ETH Rally
Ethereum’s network activity and staked ETH have reached record highs, driven by a recent regulatory boost for liquid staking. The seven-day average of daily transactions surpassed 1.74 million, exceeding the previous record set in May 2021. This surge follows the Securities and Exchange Commission’s (SEC) announcement that certain liquid staking activities and “staking receipt tokens” are not considered securities under the 1933 Securities Act, provided specific conditions are met.
This regulatory clarity reduces uncertainty, encouraging institutional participation in liquid staking products. Consequently, demand for staked ETH is increasing, locking up a larger portion of the total supply and reducing selling pressure, contributing to price appreciation. Currently, over 36 million ETH (nearly 30% of the total supply) is locked in staking contracts, indicating a strong preference for yield over immediate liquidity. This trend coincides with ETH’s price nearing $4,000, a level unseen since December.
The growing presence of “crypto treasury companies” further supports ETH’s price action. These firms, which directly hold or invest in ETH, now control approximately $11.77 billion worth of the cryptocurrency. Leading holders include BitMine Immersion Technologies, SharpLink Gaming, and The Ether Machine, collectively managing billions in ETH.
Ethereum co-founder Vitalik Buterin commented on this trend, acknowledging its positive aspects while cautioning against excessive leverage. He emphasized that treasury holdings diversify investor options, but warned that over-leveraged positions could lead to a cascade of forced liquidations and significant price drops. Buterin expressed confidence in the market’s ability to avoid such a scenario.
Since April’s low of $1,470, ETH’s price has rallied 163%, trading near $3,909. This price increase is closing the performance gap between ETH and other major cryptocurrencies like Bitcoin and Solana. The significant increase in staked ETH in June—over 500,000 ETH—further underscores growing confidence and reduced liquid supply. This confluence of factors points to a positive outlook for Ethereum in the near term.
