Ethereum

Solana

Bitcoin

<p style="text-align: justify">You can also read this news on COINTURK NEWS: <a href="https://en.coin-turk.com/ethereum-staking-yields-fall-behind-other-layer-1-protocols/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Ethereum Staking Yields Fall Behind Other Layer-1 Protocols</a><br></p>
<p style="text-align: justify">According to a recent report by Kaiko, Ethereum ’s staking yields are falling short compared to returns offered by other Layer-1 protocols such as Cosmos, <a href="https://en.coin-turk.com/polkadot-price-analysis-will-dot-price-provide-a-buying-opportunity/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Polkadot</a>, Celestia, and Solana . This situation may partially diminish Ethereum’s appeal as the second-largest <a href="https://en.coin-turk.com/dcg-clears-all-debt-signaling-positive-shift-for-crypto-market/" data-wpel-link="internal" rel="noopener noreferrer nofollow">cryptocurrency</a>.</p>
<h2 style="text-align: justify" id="decline-in-staking-yields">Decline in Staking Yields</h2>
<p style="text-align: justify">The returns generated from capital invested in Ethereum staking are lower than those offered by other Layer-1 projects. While protocols like Cosmos, Polkadot, Celestia, and Solana provide staking yields ranging from 7% to 21%, Ethereum’s staking yield remains at a mere 2.9%.</p>
<p style="text-align: justify">The Kaiko report states, “Currently, Ethereum’s staking yield lags behind the returns offered by other popular Layer-1 protocols.”</p>
<h2 style="text-align: justify" id="decrease-in-validator-demand">Decrease in Validator Demand</h2>
<p style="text-align: justify">The validator queue had an average waiting time of 45 days in June 2023, but by 2024, this duration has dropped to less than one day. This trend indicates a decline in demand for Ethereum. According to experts, reduced staking incentives and competition from other blockchains significantly affect this drop.</p>
<p style="text-align: justify">10X Research remarked, “Traditional financial interest rates considerably overshadow ETH staking yields,” evaluating the decrease in demand for Ethereum staking.</p>
<h2 style="text-align: justify" id="ethereum-s-strength-in-decentralized-finance">Ethereum’s Strength in Decentralized Finance</h2>
<p style="text-align: justify">The importance of Ethereum in the decentralized finance sector is also highlighted in a new report by Ark Invest. The report emphasizes that Ethereum continues to be a cornerstone for decentralized finance. Ark Invest stated, “Like Bitcoin , Ethereum holds a significant place in the digital asset ecosystem.”</p>
<p style="text-align: justify">If Trump wins the U.S. presidential election, U.S. Treasury yields are expected to continue exceeding Ethereum’s yields, which may exert pressure on ETH prices.</p>
<p style="text-align: justify">The decline in Ethereum’s staking yields and demand may shift investors’ attention to alternative opportunities. However, its strong position in decentralized finance enables it to maintain long-term potential. These factors could still make Ethereum an attractive option for certain investors.</p>
<p>The post <a href="https://en.coin-turk.com/ethereum-staking-yields-fall-behind-other-layer-1-protocols/" data-wpel-link="internal" rel="noopener noreferrer nofollow">Ethereum Staking Yields Fall Behind Other Layer-1 Protocols</a> appeared first on <a href="https://en.coin-turk.com" data-wpel-link="internal" rel="noopener noreferrer nofollow">COINTURK NEWS</a>.</p>

Ethereum Staking Yields Fall Behind Other Layer-1 Protocols

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