Santiment reported that over 50% of all ether issued has entered Ethereum's proof-of-stake deposit contract, marking a symbolic threshold. However, researchers from CoinShares and Ethplorer.io argue the figure misrepresents active staking levels, which stand closer to 30% of the supply. The debate highlights nuances in Ethereum's staking mechanics following the 2022 network upgrade.
Ethereum reached a notable milestone when on-chain analytics firm Santiment announced on Tuesday that 50.18% of all ether (ETH) ever issued—totaling about 120.69 million tokens—has passed through the Beacon deposit contract since staking launched ahead of the 2022 proof-of-stake transition.
This cumulative figure, around 80 million ETH, reflects deposits into the contract but does not account for withdrawals enabled by the Shanghai upgrade in 2023. As a result, the actual amount of ETH actively staked is lower, at approximately 37 million ETH, or roughly 31% of the total supply, according to on-chain data.
Luke Nolan, senior research associate at CoinShares, described Santiment's post as “inaccurate, or at least materially misleading.” He explained that while ETH enters the one-way deposit contract for staking, it can exit and return to circulation, overstating the locked supply if only the contract balance is considered. Nolan clarified that the 80 million ETH figure represents historical flow, not current staking, which is about 30% of the circulating supply.
Aleksandr Vat from Ethplorer.io echoed this view, citing data showing 37,253,430 ETH actively staked, or 30.8% of the total. He noted the Beacon contract balance of 80.97 million ETH remains static for cumulative deposits, as withdrawals mint ETH back to other addresses rather than reducing the contract.
Despite the criticism, the development underscores staking's expanding role in Ethereum's economy. Vineet Budki, CEO of Sigma Capital, viewed it as evidence of Ethereum evolving into a “digital bond,” with stakers earning yields on locked tokens. He highlighted network growth, including a 125% year-over-year rise in daily transactions and increased activity on layer-2 solutions.
Nolan pointed out that recent validator additions have been led by large players like Bitmine and U.S. ETFs, concentrating influence in the staking ecosystem. The discussion illustrates how supply metrics can influence perceptions of Ethereum's dynamics.
