Ethereum staking yield is losing to cash rates, so why are investors still lining up?

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Ethereum’s annual staking yield stands at about 2.2%, compared with 2.13% on newly agreed household deposits of up to one year and 2.442% on the wholesale €STR benchmark. The annual gap is only €24.20 on €10,000 invested, while a 5% decline in ETH’s euro price would reduce the staked position to €9,709. Nevertheless, 1.38 million ETH was waiting to enter the queue on October 23, with an estimated wait of 24 days and nine hours, while 44.1 million ETH, or more than 36% of supply, was already staked. BitMine, which held roughly $12 billion worth of staked ETH, illustrates the main attraction for investors already exposed to the asset: accumulating more tokens and earning rewards. The strategy remains subject to ETH price volatility, transaction costs, withdrawal constraints, slashing risk and the obligations associated with staking services.

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Disclaimer: this content is for information purposes only and is not financial advice. Cryptocurrencies are highly volatile: you may lose all of your capital. Always do your own research. Legal notice
Telemac
Telemachttp://cryptoinfo.ch
Passionné de nouvelles technologies, j’explore l’univers de la blockchain et des cryptomonnaies pour partager l’actualité et les innovations du secteur.

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