The Ethereum proof-of-stake deposit contract now holds a majority of the circulating supply, marking a new record for the protocol.

Santiment reports the figure at 50.18% of historical issuance, amid lower trading activity and a shift toward long-term holding.

Staking milestone

The stake ratio surpasses the halfway point for the first time in the network’s roughly 11-year history, according to Santiment. This concentration reflects long-term holding preferences, with many participants choosing passive rewards from staking instead of active trading strategies.

Market context

Lower on-chain activity and reduced exchange flows have been cited alongside the increase, as traders shift toward retaining Ether for staking yields. Santiment's data shows the share at 50.18% of historical issuance, tracking the proportion of supply locked in the deposit contract.

Analysts note higher staking ratios can lower circulating liquidity, which in turn may influence market depth and price sensitivity during volatility. Many holders prefer long-term retention and yield generation, favoring staking rewards over short-term trading profits amid uncertain market conditions.

How staking works

The deposit contract requires 32 ETH per validator, creating discrete validators that participate in consensus and earn staking rewards. As more supply becomes staked, the portion available for trading decreases, altering liquidity dynamics and potential short-term price responsiveness.