Bernstein Research analysts believe that widespread interest in Ethereum staking will fuel a new bull cycle in the cryptocurrency market as a result of zero interest rates on bank accounts.
Staking Ethereum Will Be Very Profitable
Deposit yields at banks according to a recent Bernstein analysis by analysts Gautam Chhugani and Manas Agrawal, will continue to fall until they are close to zero . Deposits in US Treasury bonds are being withdrawn from the economy . More and more capital will enter the cryptocurrency market, though, as staking becomes in popularity.
There will likely be more people interested in staking ETH and making deposits. Staking ether will become very profitable if the US base rate is cut and the dollar is devalued according to industry experts .
Staking Ethereum yields a return in ether, not dollars as emphasized by Chugani and Agrawal. The value of the digital currency has been falling for quite some time . This is also of interest to those with a longer time horizon . Additionally crucial to the rise of the ETH exchange rate is the expansion of the Ethereum ecosystem .
This time around, the yield of cryptocurrencies will form the basis of a new cryptocurrency cycle. Banks do not share their profits with their depositors . But Ethereum “gives everything away to stakers and does not dilute its monetary policy,” according to the Bernstein research .
What Is Ethereum Staking?
To stake Ethereum (ETH), one must keep and deposit a sum of ETH into a specialized contract . Doing so contributes to the safety of the Ethereum network and allows you to take part in the generation of new blocks and the verification of transactions . The number of validators is determined by the amount of ETH each candidate has pledged . You may be rewarded for helping the network out by staking your ETH.
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