Ethereum's (ETH) proof-of-stake contract address now holds more than half of all Ether ever issued — a first in the network's 11-year history, according to on-chain analytics provider Santiment — though the figure reflects a nuance in how supply is counted rather than the roughly 30% of tokens actively staked by validators.
What Happened: Staking Vault Crosses 50%
Santiment reported on Wednesday that the proof-of-stake contract address, which it described as a "one-way vault that temporarily locks ETH to help secure the network," has accumulated 50.18% of historically issued Ether before accounting for burns.
The number differs sharply from the roughly 30% staking rate often cited, because approximately 37 million ETH are actively staked out of a total supply of 121.4 million tokens. The discrepancy comes down to how the contract operates.
When validators withdraw, their Ether is released back into circulation as newly issued coins on Ethereum's main network rather than being pulled from the vault itself. "As a result, the existing supply can often differ based on whether only pre-burned or total post-burned coins are being counted," Santiment explained.
Regardless of counting methodology, demand for staking is at record levels. The validator entry queue holds around 3.9 million ETH with a 67-day wait, while the exit queue has fallen to its lowest ever at roughly 11,500 ETH and less than five hours.
Also Read: What Keeps Ethereum Trapped Below $2,000?
Why It Matters: Growing Supply Lock
Santiment predicted the vault's share will keep climbing, "particularly when trading slows down during bear cycles." That outlook aligns with current market conditions.
Retail panic selling has driven ETH below $2,000, with the token briefly touching that level late Tuesday before sliding to $1,970 during Wednesday's Asian session. Analyst Merlijn The Trader offered a contrarian take: "Ethereum isn't expensive right now, it's boring. Boring is where positions are built."
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