TheEthereumnetworkmaintainedastakingrewardsratenear3%inthethirdquarterof2024,showingaslightdeclinefromover3.5%earlierthisyear.
Thisyieldremainswellbelowthatofotherpopularproof-of-stakenetworks,suchasCosmos,Polkadot,Celestia,andSolana.Stakingrewardsforthesecompetingnetworksrangebetween7%and21%.
EthereumContinuestoUnderperformintheBullMarket
LowerstakingrewardsimpactEthereum’secosystemintwoways.Whilereducedyieldshelpcurbinflationonthenetwork,whichcanappealtolong-termholders,theyalsodiscouragesomeneworcurrentvalidatorsseekingmorecompetitivereturns.
AccordingtoKaikoResearch,thenetwork’svalidatorqueueaveragedlessthanadayrecently,anotableshiftfromitspeakwaittimeof45daysinJune2023.Althoughthisshortwaittimemakesstakingmoreaccessible,italsosignalsweakerdemandforstakingactivity.
Ethereumstakingrewardrateacrosstopproviders.Source:StakingRewards
ThedailycountofEthereumvalidatorsawaitingentryhasdeclinedsharply,markingasubstantialdropfromover95,000inApril2023toonly473currently.
Thistrendsuggestsacoolinginterestamongpotentialvalidators,whichcouldchallengethenetwork’sabilitytosustainastrongvalidatorcommunityifthetrendpersists.
Amidthebroaderbullmarket,Ethereum’srecentperformancelags.BothBitcoinandSolanasawover6%gainsinthepastweek,whileETH’sgrowthremainedflat.
BTCvsETH60-daycorrelation.Source:KaikoResearch
Additionally,accordingtoDeFiLlamadata,Solanagenerated$25.48millioninnetworkfeeslastweek,surpassingEthereum’s$22.13million.
Ethereumreservesonexchangeshavealsodecreased,withadropfromover$42billiontoroughly$38.9billion.Thisreducedsupplyonexchangescouldsupportpricestabilityorgrowthifdemandstrengthens.
“Solana’sfeemodelhasmadeitsuchthatonlypeoplewhowanttoaccessverycompetitiveappspayfeesforthoseapps,whileotherusersarelargelyunaffected,”cryptoenterpreneurMertMumtazwroteinarecentX(formerlyTwitter)post.
Despitetheseshifts,long-termETHholderscontinuetoexpressconfidenceintheasset’sfuturevalue,contrastingwithamorecautiousapproachfromshort-terminvestors.
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