Investor Interest Shifts to Ethereum Yield: Bernstein | coindesk JAPAN | Coindesk Japan

The pressure on zero-yielding bank deposits is expected to continue, making ether (ETH) yields more attractive, Bernstein said in a May 15 research report.

There is currently a flight away from bank deposits to the Treasury market, but as the ETH yield economy becomes mainstream, “it is hard to imagine that demand for ETH deposits and their yields will not increase,” analyst Gautam said. Gautam Chhugani and Manus Agrawal wrote:

Bernstein points out that money market yields are the natural choice for investors in the “yield hierarchy,” but that they are denominated in legal tender, the U.S. dollar.

Currently, there is a waiting period of nearly a month for Ethereum holders to become network validators.

“In the event of a hard landing leading to lower interest rates and a depreciating US dollar, ETH yields will immediately become very attractive,” said the report, noting that ETH yields are denominated in ETH and that crypto assets (virtual currency) remains in deflation.

These yields are directly linked to activity in the Ethereum ecosystem, which continues to see increased adoption from both retail and institutional investors, analysts write.

The report also stated, “The new crypto cycle will be about yield this time. Banks make money by not sharing yield with savers, but Ethereum shares all of its earnings with stakers.” will not dilute monetary policy,” he said.

According to Bernstein, staking growth after the “Shanghai” upgrade exceeded expectations, with the amount of staking as a share of total ETH increasing by 2% to about 15% after the upgrade, addressing oversupply concerns. ing.

｜Translation: coindesk JAPAN
｜Editing: Toshihiko Inoue
｜Image: Shutterstock
｜Original: The New Crypto Cycle Will Be About Ether Yields: Bernstein