Ethereum's Proof-of-Stake deposit contract now holds 77.85 million ETH, valued at approximately 256 billion dollars, which represents 46.59% of the total supply of the cryptocurrency after a growth of 38.4% over the past year.
The deposit contract forms the basis of Ethereum's security model, holding the cryptocurrency that validators have staked to secure the network through the staking process.
The Santiment market analysis platform reported this important milestone on Saturday, noting that this concentration sometimes gives rise to misconceptions about a 'whale wallet' that may suddenly dump its holdings on exchanges.
The protocol safeguards prevent rapid exits
The architecture of Ethereum imposes strict throughput limits to prevent mass withdrawals, with the protocol capping validator exits at 256 ETH per epoch, or about 57,600 ETH per day, according to ValidatorQueue data.
Validators requesting an exit must wait in queues that can extend over several weeks during periods of high demand, although currently, the waiting time in the exit queue is only seven minutes, with only 288 ETH pending withdrawal in early January 2026.
This gradual withdrawal mechanism protects against destabilizing events by preventing validators from quickly flooding exchanges, which maintains network security during transitional periods.
Read also: Vitalik Buterin: Ethereum Will End Privacy Compromises And Reclaim Decentralization In 2026
Divergent market interpretations
Bullish investors interpret this asset concentration as a sign of long-term confidence from Ethereum users, with the currently staked ETH reaching a record 35.9 million tokens, or 29.6% of the circulating supply.
The entry queue currently contains 1.32 million ETH awaiting deposit, far exceeding exits and suggesting sustained validator participation, despite an ETH price about 30% below the August 2024 peaks, close to $4,000.
Critics raise liquidity concerns regarding potential withdrawal queues if sharp price drops trigger massive validator exits, noting that asset concentration could cause supply shocks when sentiment turns, despite the throughput limits of the protocol designed to prevent such scenarios.
Institutional participation continues to grow, with companies like BitMine staking over 342,000 ETH in recent weeks and major asset managers integrating staking into their exchange-traded products, further concentrating validation control in the hands of larger entities.
Read also: Why BlackRock's Bitcoin Transfers Between Coinbase Accounts Are Fueling Sell-Off Fears
