Investors are committing more tokens to blockchain staking even as rewards decline, highlighting growing institutional familiarity with the model and increasing pressure on its economics. Solana’s active stake rose during the third quarter, while its gross annualized staking yield fell as issuance declined and the staking base expanded.

Institutional Access Broadens

According to Bitwise’s staking data, Solana’s active stake reached 440.5 million SOL in the third quarter. Ethereum also reached a record, with 43.8 million ETH, or 35.9% of total supply, staked.

Industry participants cited improved access as a major reason demand continues to grow. Coinbase said staking exchange-traded funds and digital asset treasuries are helping investors pursue the long-term benefits of staking rather than shifting balances based solely on short-term market movements.

At Lido, institutional discussions are increasingly focused on implementation rather than basic education. Those conversations include validator-set diversification, code audits and the percentage of a fund that should be staked. Custodians have also helped institutions participate through existing financial relationships.

• Solana active stake: 440.5 million SOL
• Ethereum staked supply: 43.8 million ETH
• Ethereum share of supply staked: 35.9%

Yield Pressure and Liquidity

The growth in staked assets has coincided with lower gross returns on both networks. Solana’s annualized staking yield fell to approximately 6%, from 6.38% in the second quarter. Lower issuance and a larger staking base outweighed increased activity and fees, with nearly 90% of gross yield still coming from issuance.

Ethereum’s gross annualized yield declined to 2.63%, from 2.81%. Newly issued ETH supplied 96.3% of that total, while priority fees and transaction-ordering payments made up the remainder.

Actual investor returns are lower after provider fees. Liquidity is another constraint: funds may need to retain unstaked assets because withdrawals can take weeks, especially during periods of market stress. European products are estimated to be only 50% to 60% staked on average.

Providers are exploring liquid staking tokens, trading staked vaults and instant-liquidity solutions to reduce that trade-off. However, longer exit queues can discourage participation when investors expect to need rapid access to capital.

What This Means

The staking market is becoming more institutional even as its yield profile normalizes. For Solana, rising active stake suggests demand is not dependent solely on headline returns, but falling issuance means investors may increasingly evaluate network fees, provider costs, liquidity and validator quality alongside the nominal yield.

Bitwise also reported that Solana’s active validator count fell to 659, from 696, during the quarter. Larger operators can supplement staking income through transaction-data services and valuable transaction opportunities, potentially intensifying competition for smaller validators. As participation grows, access and operational reliability may matter as much as rewards in determining where institutional capital settles.