Ethereum’s Supply Concentrated in Smart Contracts Hits Record High

The amount of Ethereum’s supply concentrated in smart contracts has hit a record high post-merge. 0.45% of all Ethereum is now created by smart contracts while staked Ethereum at 0.57% and Exchange balances at 0.17%.

Supply concentration on exchange has reduced since mid-2020. On the other hand, smart contracts and staking have increased since late 2020.

Post the ICO launch of Ethereum in 2014, Ethereum’s total circulating supply was 72 million ETH. During The Merge, it reached 120,534,150 ETH and has since dropped by around 10,000 ETH. The circulating supply saw a post-merge low on Oct27 before starting to rise into the start of November slowly.

Mining made up most of Ethereum’s new supply, resulting in a triple halving after The Merge. Nearly 13,000 ETH was created every day through mining. After mining was done away with from the network, the new supply declined by around 99%. Staking created just 3,000 ETH per day, with a daily burn of approx. 1,172 ETH at press time.

The total supply concentration can be bifurcated into Ethereum accounts, smart contracts, and validators. Accounts hold 72% of the total supply, smart contracts hold 15%, and validators 13%.