Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnWeb3SquareMore
Trade
Spot
Buy and sell crypto with ease
Margin
Amplify your capital and maximize fund efficiency
Onchain
Going Onchain, without going Onchain!
Convert
Zero fees, no slippage
Explore
Launchhub
Gain the edge early and start winning
Copy
Copy elite trader with one click
Bots
Simple, fast, and reliable AI trading bot
Trade
USDT-M Futures
Futures settled in USDT
USDC-M Futures
Futures settled in USDC
Coin-M Futures
Futures settled in cryptocurrencies
Explore
Futures guide
A beginner-to-advanced journey in futures trading
Futures promotions
Generous rewards await
Overview
A variety of products to grow your assets
Simple Earn
Deposit and withdraw anytime to earn flexible returns with zero risk
On-chain Earn
Earn profits daily without risking principal
Structured Earn
Robust financial innovation to navigate market swings
VIP and Wealth Management
Premium services for smart wealth management
Loans
Flexible borrowing with high fund security
Is Ethereum Losing its Edge? Here is What’s Behind the Altcoin’s Struggles

Is Ethereum Losing its Edge? Here is What’s Behind the Altcoin’s Struggles

Cryptodnes2024/10/29 20:22
By:Cryptodnes

Ethereum (ETH) has experienced a notable drop in demand recently, leading to a decrease in its burn rate and an increase in circulating supply, which has negatively impacted its price.

A report from 10X Research identifies several factors contributing to this trend. One significant issue is the declining staking yields on the Ethereum (ETH) network. Since August, the Annual Percentage Rate (APR) for staking with Lido, the largest staking provider for Ethereum, has fallen to 2.90%.

This decrease in returns has caused many ETH holders to view staking primarily as a limited income source, rather than a way to engage more deeply with the Ethereum ecosystem.

Additionally, the rise of low-cost meme tokens on platforms like Solana (SOL) has shifted focus away from Ethereum, while higher yields available in traditional finance have made staking on Ethereum less attractive.

READ MORE:
Billionaire Venture Capitalist Claims Bitcoin Will Surpass Gold as Top Inflation Hedge

As 10X Research points out, with traditional finance options, such as 2-year Treasury yields at 4.1%, significantly outperforming ETH staking yields, many holders are experiencing a gradual loss in value. This diminished demand for ETH has further eroded its worth compared to USD, Bitcoin (BTC) , and other assets.

Despite a brief spike in activity after the September FOMC meeting, momentum for Ethereum has declined. Looking ahead, if Donald Trump wins the upcoming election, the competitive landscape for staking yields could remain challenging, exerting further downward pressure on ETH prices.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!