Approximately 40% of Ethereum supply is locked as the market anticipates the final approval for ETH spot-based exchange-traded funds (ETFs).
A breakdown of this “locked supply” shows that over 33 million ETH is staked on the network, representing around 28% of Ethereum’s total supply, according to Dune Analytics data.
Proof-of-stake networks like Ethereum require users to “lock up” their digital assets to support its security and operations, and in return, they earn rewards.
Ethereum Locked Supply (Source: CoinMetrics)
Additionally, 12% of the supply is locked in smart contracts and bridges, which are seeing high adoption lately. For example, A.J. Warner, Chief Strategy Officer at Offchain Labs, noted that ETH in the Arbitrum One bridge has consistently increased over the past three years.
Market observers believe this substantial ETH lockup and the impending ETF approval will…
