Capaldi has amassed a massive 562 million streams to pull off the brilliant feat.
In typical Capaldi fashion, he wasn't letting this one go without some cheeky banter to wash down the news.
"Listen… The Beatles, Drake, Metallica, The Eagles, Michael Jackson, don't worry guys, no hard feelings, I just had to take this one," Capaldi said as per the BBC.
"Take a step back and let Daddy steer the ship now, OK?"
Capaldi went on to reveal how important Sheeran has been to him, both as a musician and a friend.
"Ed's a man who is like a brother to me, he's been a mentor, he's put his arm around me and said, 'Don't worry everything's going to be ok'," Capaldi said.
"He's been nothing but kind and gracious and beautiful, a good friend in an ever-changing industry. So to Ed I say... nice guys finish last. You snooze, you lose, kiddo. Keep up!"
The 'Before You Go' singer took to Instagram to celebrate the news, posing with an inflatable crown and his trophy to commemorate the massive occasion.
"Just heard that 'Someone You Loved' is officially the MOST STREAMED SONG OF ALL TIME in the UK," the Scotsman wrote.
"Will never cease to amaze me, thanks so much team."
And his fans had nothing but praise for him, which makes sense as they're the ones who earned him this prize.
One social media user said: "Bow down for King Capaldi."
A second added: "CONGRATS KINGGGGGGGG!!! LOVE YOU!"
A third said: "What an achievement! I can’t even imagine how you're feeling. This is the dream man! Congratulations."
Official Charts also commented underneath his post: "70 years ago today the first Official Singles Chart was published. We now have a new king."
Ed Sheeran, however, is taking some time off to think.
'Someone You Loved' pushed Sheeran down into second place in the all-time list with 2017's 'Shape Of You'.
It's also pushed Sheeran down into third place with his 2017 hit 'Perfect'.
After that, you've got Geortge Ezra's 'Shotgun', followed by Tones and I's 'Dance Monkey' to round out the top five.
The Weeknd's 'Blinding Lights is sixth, then The Killers' 'Mr Brightside' came in next, then 'Baby Shark' by Pinkfong, then Luis Fonsi's 'Despacito (Remix)' and Lady Gaga and Bradley Cooper's 'Shallow'.
Featured Image Credit: Lewis Capaldi/Twitter. Cheese Scientist / Alamy.