The vast majority of Ethereum (ETH) is concentrated in a relatively small number of wallets. Accumulation intensified particularly throughout 2025 and early 2026, both in key network contracts and large corporate treasuries. The most recent figures reveal that entities like Bitmine Immersion Technologies have accumulated 4.371 billion ETH tokens, representing approximately 3.62% of the total circulating supply of this cryptocurrency.
Ethereum, launched in 2015, quickly established itself as the second-largest cryptocurrency by market capitalization, driven by its ability to run smart contracts and decentralized applications. In 2022, the network completed its transition from a Proof-of-Work to a Proof-of-Stake (PoS) consensus mechanism, reorganizing how the network is secured and participated in. This transition not only changed the underlying technology but also how Ether is distributed and used within the blockchain economy.
Under this architecture, a core contract called the Beacon Deposit Contract, used for staking validators that secure the network, has come to hold an overwhelming share of all available tokens. Over 60% of the total ETH supply is currently locked in staking contracts, representing the highest concentration in a single address type in the network’s history.
Who is affected, why, and the depth of the change
The concentration of ETH in a few wallets has profound implications for various players in the ecosystem:
The network and decentralization
A large portion of ETH is associated with a contract that is not an individual entity but rather the protocol’s staking mechanism itself. This means that, although technically not owned by a single organization, most of the tokens are locked and out of active circulation, which reduces available liquidity and can affect the perception of decentralization.
Large exchanges and financial services
After the staking contract, large platforms like Coinbase, Binance, and other exchanges control significant amounts of ETH to facilitate customer transactions and provide liquidity. Their influence means that the actions of these players can significantly impact the market.
Companies and corporate strategies
Companies like Bitmine Immersion Technologies have accumulated multimillion-dollar amounts of ETH as part of their treasury strategies. According to the latest statement, Bitmine holds 4.371 billion ETH tokens, representing approximately 3.62% of the total supply of the cryptocurrency, and is heavily investing in staking to generate returns. Bitmine President Tom Lee stated, “Bitmine has been consistently buying Ethereum, as we find this dip attractive, given that the long-term outlook for Ethereum remains excellent,” referring to its ongoing token acquisitions, even during bear markets.
This accumulation highlights a trend toward the institutionalization of the cryptocurrency market, where public companies, funds, and custodians manage portfolios with enormous amounts of ETH. This phenomenon can generate both confidence in the asset—by attracting institutional capital—and concerns about the concentration of economic power in the hands of a few large players.
The centralization of large amounts of ETH has several clear consequences regarding liquidity and volatility. Staking and token holding by large institutions reduce the active supply available in the markets, which can intensify volatility in response to price changes or market events.
On the other hand, the participation of institutional investors helps stabilize the market because companies demonstrate their confidence in the currency. However, this also means greater difficulties for retail investors, who are exposed to the actions of large holders.
Record transaction volume and Ethereum growth
While the debate surrounding ETH concentration continues, network activity has experienced remarkable growth. At the beginning of 2026, Ethereum saw record transaction volume, driven by several key factors.
This increase is largely attributed to the expanding use of Layer 2 chains, which enable faster and cheaper transactions by offloading some activity from the main network. With lower gas fees and greater adoption of scaling solutions, Ethereum has increased its capacity to handle a higher volume of daily transactions, nearly doubling it compared to a year ago.
This surge in activity also reflects renewed interest from both developers and end users, who find Ethereum an attractive infrastructure for decentralized applications, digital finance, and other functions beyond simply exchanging tokens.
The concentration of Ethereum in a few wallets is a phenomenon that merges technical aspects, such as massive staking to secure the network, with the institutionalization of digital assets. While the network continues to operate under decentralized principles, the economic weight of large holders raises questions about liquidity, governance, and future market stability.
At the same time, the growing transactional activity indicates that Ethereum remains, despite these structural changes, a central player in the global cryptocurrency ecosystem, with increasingly active and diversified use.
