Ethereum network transactions reached an unprecedented peak this week, with the seven-day average of daily transactions touching 1.74 million, surpassing the previous record of 1.65 million set on May 12, 2021. The surge coincided with record-high levels of staked Ether and regulatory developments that boosted institutional confidence in liquid staking products.
What to Know:
- Ethereum transactions hit a record 1.74 million daily average, breaking the 2021 peak of 1.65 million
- More than 36 million ETH, representing 30% of total supply, is now locked in staking contracts
- SEC provided regulatory clarity stating certain liquid staking activities don't constitute securities
SEC Regulatory Clarity Drives Institutional Interest
The Securities and Exchange Commission's Division of Corporation Finance issued guidance stating that certain liquid staking activities and "staking receipt tokens" do not constitute securities under the 1933 Securities Act. This determination applies when specific regulatory assumptions are met.
The regulatory stance reduces legal uncertainty for institutions and platforms offering liquid staking products. Industry observers view this development as particularly significant for driving demand for staked tokens like ETH. When more tokens are locked in staking contracts, available supply decreases, potentially supporting higher prices by reducing selling pressure in the market.
Data from Dune Analytics reveals that more than 36 million ETH, representing almost 30% of total supply, is currently locked in staking contracts. This figure represents a substantial portion of circulating tokens being removed from active trading. Holders appear willing to sacrifice liquidity in exchange for staking yields as ETH prices approach $4,000, a level not observed since December.
Corporate Adoption Accelerates Treasury Holdings
Public companies designated as "crypto treasury companies" have significantly expanded their Ethereum holdings. These firms either purchase tokens directly or acquire them through dedicated investment vehicles.
Current corporate ETH holdings total $11.77 billion across various public companies. BitMine Immersion Technologies leads with 833,100 ETH valued at $3.2 billion. SharpLink Gaming holds $2 billion worth of ETH, while The Ether Machine maintains $1.34 billion in holdings.
Ethereum co-founder Vitalik Buterin endorsed the corporate treasury trend during a Thursday podcast appearance. He emphasized that treasury vehicles provide investors with additional options, particularly those facing different financial constraints.
"ETH just being an asset that companies can have as part of their treasury is good and valuable … giving people more options is good," Buterin stated on the Bankless podcast.
However, Buterin cautioned against excessive leverage in these arrangements. He warned that overleveraging could potentially lead to cascading forced liquidations and deeper price losses.
"If you woke me up three years from now and told me that treasuries led to the downfall of ETH … my guess would be that somehow they turned it into an overleveraged game," Buterin explained. He expressed confidence that current ETH investors would avoid such pitfalls, noting "these are not Do Kwon followers," referencing the founder of the failed Terra project.
Market Performance and Staking Momentum
ETH has experienced significant price appreciation, rallying 163% from April's low of $1,470 to trade near $3,909. This performance has narrowed the gap with Bitcoin and Solana in terms of percentage gains.
Staking activity accelerated notably in recent months. More than 500,000 ETH, valued at approximately $1.8 billion, was staked during the first half of June alone, according to CryptoQuant's Onchainschool analysis.
The research firm characterized this trend as signaling "rising confidence and a continued drop in liquid supply." The combination of increased staking and corporate treasury accumulation has effectively removed substantial amounts of ETH from active trading circulation.
Understanding Key Cryptocurrency Terms
Liquid staking allows token holders to stake their assets while maintaining liquidity through receipt tokens. These receipt tokens can be traded or used in other protocols while the underlying assets remain staked. Staking involves locking tokens to support network security and earning yields in return.
Corporate treasury strategies involve companies holding cryptocurrencies as part of their balance sheet reserves. This practice has gained acceptance as digital assets mature and regulatory frameworks develop.
Closing Thoughts
Ethereum's record transaction volumes reflect growing institutional confidence driven by regulatory clarity and corporate adoption. The combination of increased staking activity and treasury holdings has fundamentally altered the token's supply dynamics, supporting price appreciation while demonstrating the network's evolving role in the broader financial ecosystem.