- Ethereum staking yields to surpass the US interest rates by the coming year.
- ETH stake yields are currently positioned at 3.2%.
Ethereum staking yields to surpass the U.S. interest rates in 2025. As the Federal Reserve continues to cut interest rates, the gap between Ethereum staking returns and traditional risk-free rates is anticipated to minimize.
ETH stake yields are currently positioned at 3.2%. With the U.S. rates expected to fall below 3.75% by March 2025 and further to slip 3.5% by June, it will likely boost Ethereum’s price as the network becomes appealing for staking.
The increase in transaction fees and network activity boosts the stake rewards. Recently, the Ethereum transaction fees spiked nearly to a two-month high, reaching an average of $0.80 per transaction. Besides, the gap between the Federal Funds Rate (EFFR) and Ethereum’s Consolidated Staking Ratio (CESR) has remained negative since mid-2023.
Ethereum ETFs
The September 2022 shift of Ethereum to the proof-of-stake system provides Ethereum holders the ability to deposit funds with the network to earn rewards.
On the other hand, institutional investors might prefer to access staking yields through regulated products, such as exchange-traded funds (ETFs).
In May 2024, the Securities and Exchange Commission (SEC) approved eight applications for spot Ethereum ETFs. Several issuers removed the references to staking customer Ethereum from their applications to clear the regulatory hurdles.
According to SoSoValue, the US-based spot ether ETFs recorded $58.7 million worth of inflows on Friday, leading the funds to their first week of positive inflows, totaling about $84.5 million, after a six-week streak of net weekly outflows. Meanwhile, BlackRock’s fund has surpassed one billion in total asset value.
Ethereum Price
The second largest asset by market cap, Ethereum is currently trading at $2,605. The asset has lost 1.55% over the past 24 hours, as per CMC data. The ETH market has entered into the greed zone as the fear and greed index stays at 60. Notably, the asset’s daily trading volume has increased over 39.80% to $14.25 billion.
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