Ethereum's $120 billion in staking and $40.4 billion in L2 assets don't add up to fresh demand, analysis says
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Staking and L2 balances measure different uses of ETH, not new purchases
A new analysis argues that large dollar figures for staked Ethereum and assets on layer-2 networks should not be added together as a measure of fresh demand for ETH. According to a Sept. 21 report from CryptoSlate, about $120 billion in staked ETH and $40.4 billion in daily average total value locked on layer-2 (L2) networks were recorded in the same snapshot, but each figure reflects a different kind of activity.
The $120 billion represents ETH committed to network security through staking, where holders deposit ETH to activate validators and earn rewards. The $40.4 billion measures the assets sitting on L2 networks, which are separate blockchains that process transactions and post results back to Ethereum. Combining the two would not show how much new ETH was actually purchased by investors.
During the same period, US-traded spot Ethereum ETFs (exchange-traded funds, which let investors gain exposure to ETH through regular stock market accounts) recorded more than $140 million in net outflows between Sept. 15 and Sept. 18. The report notes that large staking and L2 balances can exist alongside investors pulling money from a particular investment channel.
Key numbers from the report
- About $120 billion in staked ETH (Sept. 21 snapshot)
- $40.4 billion in daily average total value locked on L2 networks
- Over $140 million in net outflows from US Ethereum ETFs between Sept. 15 and Sept. 18
- $121.1 million in inflows on Sept. 14, followed by $405.4 million in outflows from Sept. 14 to Sept. 17, and $143.7 million in inflows on Sept. 18
- Gas tracker Ultrasound.money showed 1.8 gwei on Sept. 21 (gwei is a small unit of ETH used to pay network transaction fees)
What the analysis says about staking balances
The report explains that a staking balance shown in dollars reflects both the amount of ETH committed and its market valuation, so it should not be read as new capital supplied during a particular day or week. An owner can stake ETH already held, which does not create fresh demand. However, someone could also acquire ETH specifically to stake it, so the result is not always existing supply.
Liquid staking tokens, which represent deposited ETH and can be transferred while the underlying stake remains committed, also add another layer of measurement. The analysis points readers to Farside Investors' dated Ethereum ETF table as one way to track flows in a single investment channel, while noting that ETF flows alone cannot settle the question of total ETH demand.
How L2 activity connects to ETH holders
The connection between L2 assets and ETH holders runs through what those networks pay Ethereum for settlement. According to the report, L2BEAT's on-chain-costs measure tracks operator payments for posting transaction data, proofs, and state updates. Its breakdown includes calldata (the data attached to transactions), blobs (a separate, cheaper way of posting data introduced in 2024), compute, and overhead.
Those costs differ from the fees users pay directly to an L2, and blob spending alone does not represent the whole settlement bill. Even total operator spending is not identical to ETH burned, since Ethereum's execution base fee is burned while priority fees go to validators. Blob fees operate in a separate market and are also burned.
Gas on Sept. 21 was 1.8 gwei, which the report notes means lower execution base fees and less ETH burned per unit of gas consumed, other things being equal. Lower gas can also reflect successful scaling that makes transactions cheaper. Total burn depends on gas consumed and the applicable execution and blob fees, while net supply change also depends on how much ETH is issued.
What is confirmed versus still unclear
Confirmed in the report: the $120 billion staked ETH figure, the $40.4 billion L2 total value locked figure, the gas reading of 1.8 gwei on Sept. 21, and the weekly ETF flow figures from Farside Investors covering Sept. 14 to Sept. 18.
Still unclear: whether recent staking and L2 growth translated into new ETH purchases. The report says the benefit to ETH holders depends on acquisition flows, fees, burn, and issuance over time, and that the size of the ecosystem is only a starting point for that assessment.
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Why the supply question matters
The report frames the issue this way: whether staking and settlement roles translate into additional purchases or a shrinking ETH supply depends on flows and fees over time. Large dollar figures can look like strong demand at a glance, but the analysis argues that separating what each figure actually measures gives a clearer picture of where ETH supply and demand stand.
Sources
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Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.