Historic Ethereum Milestone: 50% of All ETH Now Locked in Staking

Historic Ethereum Milestone: 50% of All ETH Now Locked in Staking – Should You Care?

In Brief

• Ethereum staking contract now holds ~80.9M ETH.
• That’s ~50% of supply under one calculation method.
• Highlights growing staking, but the metric is debated.

Ethereum (ETH)’s proof-of-stake deposit contract has crossed a major milestone, now holding over half of the network’s supply under one methodology. The address acts as a one-way vault where staked ETH is locked to secure the network. Analysts note the figure depends heavily on how Ethereum supply is calculated.

Ethereum Hits Major Staking Milestone

Indeed, Ethereum has reached a historic milestone as its proof-of-stake (PoS) deposit contract now holds more than 50% of the network’s supply under a specific calculation method, according to the data shared by blockchain monitoring platform Santiment in an X post on February 18.

The contract, which serves as the primary vault for staked ETH, currently holds over 80.9 million ETH, representing roughly 50.18% of total issuance using a historical supply metric. This marks the first time in Ethereum’s history that the PoS contract has crossed the halfway threshold.

*Ethereum top address holdings and top holders. Source:* *Santiment/X*

How The PoS Contract Works

The Ethereum PoS deposit contract functions as a one-way vault that temporarily locks ETH to help secure the network. When users stake ETH, coins are sent into the deposit contract, the ETH is removed from normal circulation, and staked coins cannot be traded or spent.

When validators later exit staking, ETH is not withdrawn from the vault directly. Instead, new ETH is issued on the main network, effectively releasing liquidity back into circulation. This mechanism is a key feature of Ethereum’s post-Merge architecture.

Why The “50% Supply” Metric Is Controversial

Despite the headline milestone, analysts caution that the figure depends heavily on how the Ethereum supply is measured.

The 50.18% reading is based on total historical issuance before accounting for burned coins. That said, commonly cited estimates suggest around 120 million ETH exist in the current circulating supply.

That means the PoS contract does not necessarily hold half of all currently circulating ETH, but only half under a specific accounting framework. In other words, the milestone reflects deposit contract balances rather than a universal measure of staking dominance.

Why Staking Keeps Growing

Ethereum staking has continued to expand steadily since the network transitioned to proof-of-stake. Several factors are driving the trend, including yield generation from staking rewards, institutional participation, liquid staking growth, and reduced trading activity during bearish periods.

During market slowdowns, long-term holders are more likely to stake assets rather than actively trade them. This dynamic can accelerate the growth of the deposit contract balance over time.

Higher staking participation can reduce liquid supply, strengthen network security, and increase long-term holder influence. However, it also raises ongoing debates around liquidity, centralization risks, and how supply metrics should be interpreted.