Ethereum Staking Surpasses 50% of Issued ETH, Sparking Debate Over Supply Metrics

Ethereum has reached a symbolic milestone, with more than 50% of all historically issued ether (ETH) now sent to the network’s proof-of-stake (PoS) deposit contract, according to on-chain analytics firm Santiment. The announcement has fueled debate among crypto analysts over what the figure truly represents for Ethereum’s circulating supply and staking activity.

Santiment reported that 50.18% of ETH ever issued has flowed into the Beacon Chain deposit contract since staking was introduced before Ethereum’s 2022 transition from proof-of-work to proof-of-stake. With Ethereum’s total supply currently at approximately 120.69 million ETH, blockchain data shows the deposit contract holding over 80 million ETH. Major holders include Binance, BlackRock, Coinbase, and Bitmine, one of the largest ether-focused treasury firms.

However, analysts caution that the 50% milestone may be misleading. Luke Nolan, senior research associate at CoinShares, noted that the Beacon deposit contract reflects cumulative deposits rather than the amount of ETH actively staked. Since the Shanghai upgrade in 2023 enabled withdrawals, validators can exit and return ETH to circulation. Withdrawals are processed by minting ETH back to execution-layer addresses, meaning the deposit contract balance does not decrease when funds are withdrawn.

Current data from Ethplorer and CryptoQuant indicates that around 37.25 million ETH—roughly 30% of the circulating supply—is actively staked. This distinction significantly alters the narrative around Ethereum’s supply lock and liquidity dynamics.

Despite the controversy, staking growth highlights Ethereum’s evolving economic model. Industry leaders argue that rising validator participation positions ETH as a yield-bearing “digital bond,” reinforcing network security through long-term commitment. At the same time, recent validator growth appears increasingly driven by institutional players and crypto ETFs.

As Ethereum staking continues to expand, how supply metrics are calculated and presented will remain crucial in shaping investor perception and broader crypto market sentiment.