For the First Time in History, Ethereum Staking Addresses Capture Over Half of ETH Supply
Despite a sharp decrease in Ethereum's price, the interest in staking has surged, causing the staking contract to hold over 50% of the total ether supply, a first in the cryptocurrency's history.
Ethereum’s proof-of-stake contract address has crossed a significant milestone, holding over 50% of the total Ether supply for the first time in its decade-long existence. According to on-chain analytics firm Santiment, the current staking demand has soared despite Ethereum’s price experiencing a drop to bear market lows.
This statistic can be slightly misleading since approximately 37 million ETH is currently staked—about 30% of the entire supply, which totals 121.4 million tokens. Santiment clarifies that it is common to misunderstand the mechanics of the proof-of-stake address, describing it as a ‘one-way vault’ meant to temporarily secure ETH within the network.
“When users stake ETH, it enters this contract and is removed from normal circulation, rendering it unusable for spending or trading.”
Different Methods Of Counting Supply
When validators withdraw, the Ether returns to circulation as newly minted coins on Ethereum’s main network, rather than being drawn directly from the vault. Santiment elaborated, stating:
“Consequently, the total supply can vary depending on whether only pre-burned or the entirety of post-burned coins are accounted for.”
Hence, the vault accumulates ETH without it easily reverting back to the flow, which can exaggerate the contract’s share of the current supply. Currently, this is thought to be 50.18%, factoring in the historical issuance before token burns. During challenging market conditions, especially bear periods, it is expected that this will further rise.
“As staking becomes more popular, anticipate that this address will continue to grow, especially when market activity diminishes during bear cycles.”
Regardless of the figures cited, the demand for staking has surged to new heights, and staking’s share of the total ETH supply is also at unprecedented levels. Notably, there are currently around 3.9 million ETH waiting in the validator entry queue, with a waiting period of 67 days.
Ether Price at Bear Market Lows
Given the panic selling among retail investors, Ether’s price has plummeted below $2,000, with a brief dip to $1,970 reported during an Asian trading session.
“Ethereum isn’t expensive; it just seems dull right now,” noted analyst Merlijn The Trader, adding, “Dullness is where positions are built.”
