Ethereum’s staking contract now holds over 50% of the total Ether supply for the first time. This marks a notable shift, according to on-chain analytics provider Santiment. However, some confusion surrounds how the staking address functions, with key factors influencing the apparent increase in Ether locked in the contract.
Santiment reported that Ethereum’s proof-of-stake contract address has surpassed 50% of the total Ether supply. The Ethereum network’s staking contract currently holds over 37 million ETH, representing 30% of the total 121.4 million Ether tokens. Despite this, the actual percentage of staked Ether fluctuates based on the way coins are counted, whether before or after being burned.
BREAKING: Ethereum's proof-of-stake contract address now holds over half of Ethereum's supply for the first time in the coin's 11-year history.
There is often confusion about how this proof-of-stake address works. Think of it as a one-way vault that temporarily locks $ETH… pic.twitter.com/agj2YG37nu
— Santiment (@santimentfeed) February 17, 2026
The staking contract acts as a one-way vault, locking Ether temporarily to secure the network. Once staked, Ether cannot be spent or traded until the validator withdraws it. Santiment explained that when validators leave, the staked ETH is released as newly issued coins rather than being pulled directly from the vault itself.
When Ether is staked, it enters a contract, which removes it from circulation. The contract then holds it, preventing any trading or spending during that period. Santiment clarified that this system leads to an accumulation of Ether in the staking vault, making it seem as if the staking contract holds a larger portion of the total supply.
This increase in the contract’s share is due to how the system handles the release of coins. As more Ether is issued and burned over time, the percentage of staked Ether continues to rise. Santiment also noted that this trend would likely continue, especially in bear markets or during times of low trading activity.
Santiment observed a surge in demand for Ethereum staking, with the validator entry queue nearing record highs. Approximately 3.9 million ETH are waiting to be staked, with a wait time of 67 days. This growth comes despite Ethereum’s price recently falling below $2,000, driven by panic selling among retail traders.
Analysts, including Merlijn The Trader, pointed out that Ethereum may be seen as “boring” in the current market.
THE BIGGEST MISTAKE IN CRYPTO?
Buying hype.
Selling fear.Ethereum isn’t expensive right now.
It’s boring.And boring is where positions are built.
Smart money buys silence.
Retail buys noise. pic.twitter.com/4Qltuc7YU0— Merlijn The Trader (@MerlijnTrader) February 17, 2026
Despite the low price, this period could be crucial for building positions as staking demand increases. Ethereum’s staking contract is expected to continue growing, especially as more coins are locked during periods of market stagnation.
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