Nasdaq-listed mining giant BitMine purchased 20,000 more ETH via BitGo in order to increase its strategic weight in the Ethereum ecosystem, bringing its total assets close to a record level. This massive buying move occurred simultaneously with the amount locked in staking contracts on the network reaching 50.18% of the total supply, exceeding a historical threshold. While liquidity balances change in cryptocurrency markets, the rate of ETH collection by institutional investors follows a parallel course with the growth in the staking mechanism that reinforces the security of the network.
BitMine’s Aggressive Accumulation Strategy
Led by Tom Lee, BitMine has shifted into gear towards its vision of owning 5% of Ethereum’s total supply. According to Lookonchain data, the latest purchase of $ 39.8 million is the continuation of the purchase series of 45,759 ETH that the company announced last week. The company management declared to the market their determination to expand their digital asset portfolio, stating that the final target was achieved by 72%.
Although the Ethereum price has lost approximately 38.54% in the last month, institutional players such as BitMine consider this decline as an entry opportunity. With current price levels hovering around $1,972, market analyst Ted Pillows notes that liquidity sets remain balanced, but the risk of liquidation is high due to the aggressive attitudes of both long and short investors.
In addition to institutional buying, continued interest in spot Ethereum ETFs supports market dynamics. According to SosoValue data, while there was no outflow in any of the nine different ETFs, a total net inflow of $48.63 million was recorded. This data shows that individual and institutional investors’ confidence in ETH’s long-term potential outweighs short-term price fluctuations.
Effects of Locked Supply in Staking Contracts
The data shared by Santiment points to one of the most important milestones in the 11-year history of the Ethereum network. Since the transition to the Proof-of-Stake mechanism, the amount accumulated in staking contracts has begun to constitute more than half of the total historical supply. This means that the amount of ETH in circulation has decreased significantly and assets are locked in security protocols that work with the logic of “one-way safe”.
This increase in the amount of staking stands out as a factor that limits the active trading volume in secondary markets while maximizing the security of the network. Everstake experts emphasize that especially in bear markets, investors turn to staking to earn returns rather than spending their assets. While the actual supply in circulation is estimated to be around 120 million ETH, the increase in locked assets theoretically reduces the selling pressure on the price.
Despite 30-day realized capital flows turning negative in on-chain metrics, the increase in staking rate strengthens Ethereum’s technical infrastructure. Although net position changes in Bitcoin and Ethereum are in a downward trend, the fact that half of the network is locked creates a basis that can trigger liquidity crises. This chart proves that Ethereum has moved from being just a trading asset to a mature structure where the majority of the supply participates in the management of the network.
