Nearly 47% of ETH Supply Is Locked in Staking, Santiment Reports

Rising validator and institutional staking has locked up large amounts of ETH, limiting supply while increasing sensitivity during market stress.

Ethereum staking continues to absorb a larger share of the network’s total supply, signaling long-term conviction among holders. On-chain data indicates retail traders and institutions are steadily committing ETH to help secure the network. Meanwhile, market participants are assessing how such a large amount of locked ETH could affect liquidity if market conditions turn volatile.

Ethereum Staking Reaches New High as Validators Lock Up 77.8M ETH

Santiment data shows Ethereum’s official proof-of-stake deposit contract holds 77.85 million ETH, valued at more than $256 billion. Roughly 46.6% of the total ETH supply now sits in the contract. Over the past year alone, the amount of ETH held in the contract has grown by 38.4%, reflecting steady growth in validator participation.

📊 The official Ethereum Proof-of-Stake deposit contract (formerly the “Beacon Chain” wallet) now holds 77.85M $ETH worth just over $256B, rising by 38.4% coins held in the past year.

💸 Its purpose is to hold ETH that has been staked by validators to secure the Ethereum… pic.twitter.com/FNf43AmSOb

— Santiment (@santimentfeed) January 17, 2026

The deposit contract exists solely to hold Ether staked by validators who help secure the Ethereum network. Despite claims on social media, this wallet does not function like a whale address. Funds locked in staking cannot be sent directly to exchanges.

Withdrawals only occur when validators exit, and even then, the protocol limits how quickly ETH can re-enter circulation. Such a large share of supply in one contract may appear concerning at first glance. 

Even at that, many analysts view it as a sign of trust in Ethereum’s long-term outlook. Nearly half of all ETH is now locked in staking. Such levels suggest a broad group of users is willing to commit capital for long periods in return for steady staking rewards.

However, skeptics continue to point to possible liquidity risks. A sharp price drop could push many validators to exit around the same time, creating withdrawal queues. Those delays may slow the return of ETH to the open market and could amplify price swings. 

Some critics also argue that long-term staking concentration might give a smaller group of large holders more influence over time.

Institutional Staking Grows as Firms Lock Millions of ETH

Institutional players are playing an increasing role in this trend. Funds, custodians, and ETF-related services have collectively staked more than 10 million ETH. BitMine Immersion Technologies stands out among them, with over 1.25 million ETH staked. 

Image Source: TradingView

Large staking providers also continue to gain share. Lido Finance now handles about 24% of all staked ETH, making it one of the most influential entities in Ethereum’s staking ecosystem.

Price action has remained relatively stable despite the growing share of locked supply. Ether traded between $3,000 and $3,300 through early January before rising 5% on January 14 to $3,380. At the time of writing, Ether was changing hands near $3,293, up 6% over the past week.