BitMine Deepens ETH Commitment As Staking Surges And Ethereum Usage Hits New Highs

BitMine, the firm widely associated with analyst Tom Lee, is doubling down on its long-term Ethereum strategy.

The company has just staked another 86,400 ETH, worth roughly $266 million, solidifying its position as one of the largest single ETH stakers in the world. This new addition pushes BitMine’s total holdings to an estimated 1.08 million ETH, valued at around $3.3 billion based on current market prices.

The firm’s decision represents more than just a financial move , it signals a calculated long-range bet on Ethereum’s stability, yield potential, and future dominance. Instead of taking profit or reducing risk exposure, BitMine is locking its assets into the staking ecosystem and collecting steady rewards. Their strategy closely aligns with broader on-chain trends, where more than 35 million ETH, representing over 29% of the total supply, is now staked across the network.

This momentum isn’t happening in isolation. On-chain activity across Ethereum is surging. Daily transactions have reached a new all-time high, and address growth is accelerating at a pace not seen since 2018. Usage is moving first, and markets appear to be adjusting around that reality.

Bitmine Expands Its Massive Ethereum Position

BitMine’s decision to stake another 86,400 ETH was first highlighted by blockchain analytics trackers, with data shared publicly by Lookonchain. The on-chain activity confirms that BitMine continues consolidating its role as a dominant participant in Ethereum staking infrastructure.

This new deployment of funds reflects a clear thematic pattern: accumulate, stake, and earn, instead of selling into market volatility. With ETH trading near the $3,000 range, many investors expected large holders to de-risk. Instead, BitMine is doing the opposite.

Their massive position now generates an estimated 3–5% yield, translating into tens of thousands of ETH annually. This passive income stream strengthens their balance sheet while reinforcing the firm’s conviction in Ethereum’s long-term utility and monetary structure.

The timing is also notable. Many institutional players are cautious, but BitMine appears determined to front-run the next phase of Ethereum’s growth cycle. Their behavior mirrors a broader trend among sophisticated market participants leveraging staking as a strategic asset rather than a speculative tool.

Ethereum Staking Supply Reaches New Record Levels

Beyond BitMine, the Ethereum ecosystem is witnessing a historic surge in staked supply. Over 35 million ETH, nearly one-third of the entire circulating supply, is now locked in staking contracts.

This shift has far-reaching implications:

•  Lower circulating supply can reduce sell pressure
•  Higher staking participation signals confidence in Ethereum’s future
•  Network security strengthens as more capital backs validators
•  Yield incentives continue attracting long-term holders

Even though staking includes risks , from slashing penalties to smart contract vulnerabilities , the scale of participation suggests the market is becoming increasingly comfortable with Ethereum’s evolving consensus structure.

Institutions, exchanges, custodial platforms, and long-term investors all play a role in this trend, but the entry of large players like BitMine significantly amplifies its impact.

Transaction Activity Breaks All-Time Highs

While staking activity is rising, Ethereum network usage is also exploding. The blockchain just recorded a new all-time high of 1.87 million daily transactions (7-day average), surpassing even the peak of the 2021 DeFi boom.

This matters for several reasons:

•  High activity indicates real demand, not just speculation
•  Continued network usage suggests robust developer and user ecosystems
•  Increased transactional throughput reinforces Ethereum’s role in DeFi, NFTs, stablecoins, and L2 networks

This milestone marks a symbolic moment for Ethereum. It validates that, beyond price movements, the network continues achieving higher adoption, wider utility, and more diverse use cases.

Address Growth Signals Renewed Market Momentum

Supporting the spike in transactions is a parallel surge in active addresses. Recent data shows:

•  728,904 active addresses, one of the highest daily counts in months
•  Strongest new address creation since 2018
•  Rising participation across retail and institutional segments

This growth demonstrates that Ethereum is not merely retaining its user base , it is expanding it. New participants entering the ecosystem typically precede market recovery phases or sustained growth cycles, suggesting the current trajectory reflects deeper structural improvements rather than temporary hype.

Wallets, exchanges, and decentralized applications (dApps) are reporting increased engagement, echoing the on-chain metrics. Even Layer 2 networks, built atop Ethereum, are experiencing boosted activity that feeds back into the main chain.

Market Structure Strengthens As Sell Pressure Declines

With supply tightening through staking and usage surging, Ethereum’s market structure appears to be strengthening. A network with:

•  Higher locked supply
•  Lower liquid availability
•  Increased utility
•  Growing user base
•  Rising institutional participation

… naturally sees a reduction in short-term volatility and a more resilient price environment.

Staking, in particular, acts as a stabilizing mechanism. It removes tokens from circulation and aligns holders with long-term incentives. BitMine’s decision to expand its staking position underscores this dynamic, amplifying the market’s confidence signal.

Nexo also highlighted this trend, noting the ecosystem-wide significance of such aggressive staking behavior.

While no market move is without risk, the data suggests Ethereum is strengthening its foundation, with usage, volume, and participation metrics rising ahead of price.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

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