June 2022 – OnStaking Report

The Ethereum network has achieved a major milestone in its transition to Proof of Stake (PoS), with over 12 million ETH now staked in the Ethereum 2.0 deposit contract. According to the latest OnStaking report, this surge in staking activity reflects growing confidence in the upcoming Ethereum Merge — a long-awaited upgrade expected to significantly improve the network’s scalability, energy efficiency, and decentralization.

Ethereum’s Road to Proof of Stake

Since the launch of the Beacon Chain in December 2020, Ethereum has been moving towards replacing its energy-intensive Proof of Work (PoW) consensus mechanism with PoS. This transition will be finalized through the Ethereum Merge, which will integrate the Beacon Chain with the mainnet, allowing stakers to validate transactions and secure the network.

The staking contract for Ethereum 2.0 now holds more than 12 million ETH, valued at approximately $21 billion at current market prices. This represents nearly 10% of the total ETH supply, a strong indicator of community and institutional support.

Why the Surge in Staking Now?

Several factors have contributed to the surge in ETH staking in June 2022:

• Merge Date Nearing: Ethereum core developers have been finalizing testnets and timelines. With successful testnet runs like Ropsten and Kiln, confidence in the Merge’s completion by Q3 2022 has increased.

• Rising Staking Rewards: Stakers are currently earning yields between 4–6% APY, depending on validator count and network activity.

• Institutional Interest: Platforms like Lido Finance and Coinbase have made ETH staking more accessible. Liquid staking options have also grown, providing flexibility and liquidity to participants.

Community and Developer Sentiment

Ethereum co-founder Vitalik Buterin and other developers have frequently expressed optimism about the Merge. In recent Ethereum core developer calls, the team confirmed the Merge is on track and emphasized a reduction in energy consumption by over 99% post-upgrade.

Meanwhile, community sentiment is bullish. Social media mentions of "Ethereum Merge" and "ETH 2.0 staking" reached new all-time highs in June, according to data from Google Trends and Twitter analytics platforms.

Staking Infrastructure Grows Stronger

Major staking service providers — such as Lido, Rocket Pool, and centralized exchanges — have reported increased inflows from retail and institutional investors. According to OnStaking data, liquid staking now accounts for more than 30% of all staked ETH, offering investors the ability to stake while retaining token mobility.

The network’s growing validator count has also strengthened decentralization. Over 400,000 validators are now securing the Ethereum network, helping to distribute consensus power more evenly.

Market Implications

The rapid growth in ETH staking reflects strong long-term conviction in Ethereum’s future. However, analysts warn that reduced ETH liquidity could lead to price volatility in the short term, especially around the Merge event.

Still, the broader market is treating the staking trend as bullish. The increasing lockup of ETH reduces circulating supply, which could place upward pressure on prices over time, particularly in bullish cycles.

Looking Ahead

With the Merge expected in Q3 2022, Ethereum’s transformation is nearing a critical inflection point. The network will finally complete its long-awaited transition to PoS, aligning its technical roadmap with global sustainability trends and investor expectations.

For stakers, the Ethereum Merge represents not just a technical upgrade, but also a new economic model — one that incentivizes participation, rewards long-term commitment, and sets the stage for Ethereum’s next era of growth.