# Ethereum Staking market cap Methodology

## 1. Overview

Ethereum staking market cap measures the total USD value of ETH staked in the Ethereum beacon chain proof-of-stake consensus mechanism. This metric represents the market capitalization of staked ETH assets, calculated by multiplying the total effective balance of all validators by the current ETH price. The metric provides insight into the economic security and participation levels in Ethereum's staking ecosystem.

## 2. Data sources

- **Ethereum beacon chain validator data**: Daily snapshots of validator information including slot timestamps, validator counts, and total effective balance across all active validators
- **End-of-day price feeds**: Token price data for ETH to USD conversion

## 3. Step-by-step calculation

### Component A: Beacon chain validator data extraction
- **Purpose**: Extract and deduplicate daily validator balance information from the Ethereum beacon chain
- **Logic**: Read validator data from beacon chain snapshots, which contain slot-level information about validator states and balances. Since beacon chain data can have multiple entries per day, apply deduplication by using a row number window function partitioned by date and ordered by slot timestamp descending. This ensures only the latest slot data for each day is retained, providing the most current validator state.
- **Key fields**: Extract `slot_timestamp` for timing, `slot_number` for block reference, `number_of_validators` for validator count, and `total_effective_balance` for the aggregate staked amount across all validators

### Component B: Balance normalization and token identification
- **Purpose**: Convert validator balances from wei units to standard ETH denomination and assign token metadata
- **Logic**: Transform the raw `total_effective_balance` from wei units to ETH by dividing by 1e9. This converts the beacon chain's native unit representation to standard ETH decimals. Set the `token_address` to the WETH contract address (`0xc02aaa39b223fe8d0a0e5c4f27ead9083c756cc2`) to identify the staking asset as wrapped ETH for consistency with other token-based metrics.
- **Key fields**: Convert `total_effective_balance` to `amount` field in ETH units, assign `token_address` as WETH identifier

### Component C: Metric standardization and classification
- **Purpose**: Apply standard metric formatting and business classifications
- **Logic**: Truncate timestamps to daily grain for consistent time boundaries. Apply business segment classification as `blockchain` and market sector as `blockchains_l1` to categorize this as a layer 1 blockchain metric. Set chain identifier as `ethereum` and leave product identifier null since this is a protocol-level metric rather than application-specific.
- **Key fields**: Structure data with standardized `timestamp`, `timestamp_grain`, `market_sector_id`, `business_segment_id`, `product_id`, `chain_id`, and staking amount

### Final aggregation
- **Currency conversion**: Convert ETH staking amounts to USD using end-of-day price feeds through the standard currency conversion macro, maintaining decimal precision without additional decimal corrections since beacon chain balances are already properly denominated
- **Time aggregation**: Daily aggregation based on truncated slot timestamps, ensuring one data point per day represents the final validator state
- **Data completeness**: Apply fill strategy with zeros for any missing data points to ensure continuous time series
- **Final calculation**: The final staking market cap equals the total effective balance of all validators (in ETH) multiplied by the ETH price (in USD), representing the total market value of staked assets in the Ethereum beacon chain

*This methodology was automatically generated by Token Terminal's methodology analyzer.*

Value of native tokens currently staked to secure a proof-of-stake network.

Staking market cap

Ethereum

Validators process transactions and receive fees from users (supply-side fees).

Ethereum is a smart contract platform for decentralized applications (a blockchain). Ethereum was founded by Vitalik Buterin, Anthony Di Iorio, Mihai Alisie, etc. and launched in 2015.

ETH holders own and govern the protocol. They currently take a cut of the total transaction fees (base fee) paid by users (revenue). Ethereum’s investors include KR1, Block Ventures, 8 Decimal Capital, etc.

EthereumETH

Staking market cap

Staking market cap

Competitive landscape