Ethereum staking contract holds over half of ETH supply — Santiment
Santiment reports Ethereum’s proof-of-stake deposit contract now accounts for over 50% of historically issued ETH, a first in the coin’s 11‑year history. The headline figure reflects a particular counting method: the one‑way staking vault accumulates ETH that has been removed from normal circulation, while withdrawals are issued on the mainnet rather than returned to the vault, so the contract’s share appears larger when measured against pre‑burn supply. About 37 million ETH are actively staked (~30% of the current 121.4 million supply) while Santiment’s calculation using historic pre‑burn issuance yields 50.18%. Staking demand is at record highs: a validator entry queue holds ~3.9 million ETH with a ~67‑day wait, and the exit queue is minimal (~11,500 ETH, <5 hours wait). Ether price has fallen to bear‑market lows below $2,000 (around $1,970 in the Asia session), driven by retail selling. Key implications for traders include rising supply locked in staking (reducing circulating float), high staking demand and long entry queues, and short‑term price weakness. Monitor staking inflows, validator queues, and on‑chain issuance metrics for signals on liquidity and potential supply reintroduction.
Neutral
The news is neutral overall. Bullish elements: rising staking demand and a large portion of ETH locked in the deposit contract reduce circulating supply, which can support price over the medium to long term. Record validator entry queues indicate strong long-term participation and potential supply lock-up. Bearish elements: ETH price is at bear‑market lows with retail-driven selling, and staking mechanics mean withdrawals are issued as newly minted ETH on the mainnet, which can reintroduce supply and cap upside if exit activity increases. Short term, the price reaction is negative (weakness below $2,000) and trader sentiment may stay cautious. Over the medium-to-long term, sustained high staking rates can be supportive if trading liquidity remains constrained. Traders should monitor staking inflows/outflows, validator queue lengths, burn vs. pre-burn supply metrics, and on‑chain issuance to gauge net liquidity impact and probable price pressure or support. Historical parallels: periods when large shares of supply became illiquid (e.g., long-term token lockups or staking waves) often reduced volatility and supported higher prices later, but only when demand outweighs selling pressure — otherwise prices can remain depressed despite locked supply.