Ethereum Staked Supply Hits 50% Milestone Amid Debate Over Supply Metrics

Ethereum has reached a historic milestone as more than 50% of its total supply is now locked in staking addresses for the first time. According to data from Santiment, this surge in staking activity occurred despite Ethereum's price retracing to levels reminiscent of a bear market. This 50% figure specifically refers to ether sent to the proof-of-stake (PoS) deposit contract relative to historically issued ETH. However, the milestone has sparked a debate among crypto analysts over the precise interpretation of circulating supply metrics and staking activity. Despite the debate, the trend signals strong long-term conviction among holders who prioritize earning rewards over selling. Market analysts suggest that this reduction in liquid supply could trigger a supply shock, potentially supporting a price recovery when demand returns to the market.