Ethereum staking reached a new milestone in the third quarter of 2026, with 43.8 million ETH committed to securing the network by the end of September. Despite the record participation, the return generated by staking declined, highlighting a growing gap between the amount of capital securing proof-of-stake blockchains and the rewards earned by participants.
Data published in Bitwise’s Q4 2026 Staking Report shows that Ethereum’s staked supply represented 35.9% of its total ETH supply at the end of the quarter. Gross annualized staking yield fell to 2.63%, compared with 2.81% in the second quarter.
Solana experienced a similar pattern, with a larger share of its supply staked but a lower annualized yield. The figures illustrate how staking participation and staking returns can move in opposite directions as network conditions and reward distribution change.
Ethereum Staking Reaches a New High
Ethereum ended September with 43.80 million ETH staked, marking the highest level recorded by the end of a quarter. The amount represented 35.9% of the cryptocurrency’s total supply, meaning more than one-third of all ETH was committed to staking.
Net staking inflows reached 1.99 million ETH during Q3. This marked the sixth consecutive quarter in which more ETH entered staking than left it, extending a sustained period of growth in participation.
The increase means more ETH was being used to help secure Ethereum through its proof-of-stake consensus mechanism. Under this system, validators stake ETH to participate in network operations, including proposing and attesting to blocks. The protocol distributes rewards to eligible participants according to its rules and network conditions.
Ethereum’s official staking documentation explains how staking supports network security and how validators participate in the process.
Why Ethereum’s Staking Yield Declined
Although the amount of staked ETH increased, the gross annualized yield dropped from 2.81% in Q2 to 2.63% in Q3. The decline was 0.18 percentage points over the quarter.
One factor behind this pattern is the relationship between the total amount staked and the rewards available to participants. When more ETH participates in staking, rewards are distributed across a larger pool. As a result, the yield earned on each unit of staked ETH can decline, even while overall participation continues to grow.
Staking yield also depends on the sources of validator rewards. These can include consensus rewards generated through protocol issuance, as well as priority transaction fees and maximal extractable value, commonly known as MEV. The relative contribution of these sources can change as network activity and transaction demand fluctuate.
The 2.63% figure is a gross annualized yield, not a guaranteed return for every ETH holder. Actual rewards can differ based on validator performance, service-provider commissions, operating costs and other conditions. It also does not represent the change in ETH’s market price or an investor’s total return.
Solana Also Sees More Staking and Lower Returns
Ethereum was not the only network to record this combination of increased staking participation and lower yields. Solana ended Q3 with approximately 69% of its token supply staked, while its gross annualized staking yield declined to 5.99% from 6.38% in the previous quarter.
The figures suggest that both networks continued to attract staking participation even as the percentage returns associated with staking decreased. However, their yields should not be compared in isolation: Ethereum and Solana have different protocol designs, reward structures and validator requirements.
Solana’s official staking documentation provides details on how token holders delegate SOL to validators and participate in the network’s staking system.
The broader takeaway is that a high staking ratio does not necessarily translate into a higher yield. Participation levels and returns measure different aspects of a proof-of-stake network: one reflects how much supply is committed to staking, while the other estimates the annualized rewards generated by that participation.
What the Numbers Mean for Ethereum
Ethereum’s record staked supply points to continued participation in the network’s security mechanism. At the same time, the decline in gross annualized yield shows that rising staking levels do not automatically increase the percentage rewards earned by individual participants.
For ETH holders considering staking, the distinction between gross yield and net rewards is important. The reported rate is a network-level measure and may not match the return received through a particular exchange, staking service or liquid staking protocol after fees and other costs.
The amount of ETH committed to staking is also only one measure of Ethereum’s overall performance. Network usage, transaction fees, validator participation and protocol changes can affect other aspects of its economics.
The Outlook for Proof-of-Stake Networks
The Q3 figures show continued growth in Ethereum staking alongside lower gross annualized returns, with Solana displaying a similar trend. More tokens were committed to network security, but the reported percentage yields declined.
Future staking data will help show whether participation continues to rise and whether yields stabilize or fall further. Changes in protocol rewards, transaction activity and the amount of staked supply can all influence these metrics.
For now, Ethereum’s 43.8 million staked ETH marks a record for the network, while its 2.63% gross annualized yield highlights why staking participation and staking profitability should be evaluated separately.
