Ethereum supply concentration in smart contracts hits all time high

Ethereum supply concentrated in smart contracts hit a record high after the merger. The smart contract now creates his 0.45% of all his Ethereum behind 0.57% staked Ethereum and 0.17% Exchange balance.

The chart below shows some of the areas with the highest concentration of Ethereum supply. The supply area is shown as a percentage of circulating supply from bottom to top. Supply held on exchanges is shown in yellow, supply held in smart contracts is shown in red, and supply held in beacon chains is shown in purple.

This data shows where new Ethereum is being distributed, giving us insight into the network activity of new coins. Exchange concentration has decreased since mid-2020, while smart contracts and staking have increased since late 2020.

ethereum supply
Source: Glassnode

After the Ethereum ICO was launched in 2014, the total Ethereum circulation was 72 million ETH. It reached 120,534,150 ETH at the time of The Merge and has since dropped by about 10,000 ETH. Circulating supply hit a post-merger low on October 27, before beginning a slow rise in early November.

Mining accounted for the majority of Ethereum’s new supply, leading to a three-fold halving following The Merge. Approximately 13,000 ETH were created daily as a result of mining. When mining was removed from the network, new supply dropped by about 99%. Only 3,000 ETH per day is created from staking, and about 1,172 ETH is consumed per day at the time of writing.

ys supply
Source: Ultrasonic Money

According to Ultrasound Money data, the concentration of total supply can be broken down into Ethereum accounts, smart contracts, and validators. 72% of the total supply is held in accounts, 15% in smart contracts and 13% in validators.

ys supply
Source: Ultrasonic Money

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