Ether Price May ‘Decouple’ From Other Crypto Post-Mergers – Chainalysis – Vidianews: Home for Latest and Premium News Content

Chainalysis suggests ETH may decouple from other cryptocurrencies post-merger as its staking rewards could make it similar to bonds or raw materials.

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Crypto-analytics firm Chainalysis has suggested that the price of Ether (ETH) may decouple from other crypto assets post-merger as staking returns may drive strong institutional adoption.

In a report on Wednesday, Chainalysis explained that Ethereum’s upcoming upgrade would introduce institutional investors to stake similar returns to certain instruments such as bonds and commodities while becoming much more eco-friendly. environment.

The report states that staking ETH is expected to offer a 10-15% annual return for stakers, making ETH an “attractive bond alternative for institutional investors” given that bond yields Treasury offer much less in comparison

“Ether’s price may decouple from other cryptocurrencies after the merger, as its staking rewards will make it similar to an instrument like a bond or a commodity with a carry premium.”

According to data from Chainalysis, the number of institutional ETH stakingrs – those holding $1 million worth of ETH or more – has “increased steadily” from less than 200 in January 2021 to around 1,100 in August of this year.

The company notes that if this number increases at a faster rate post-merger, it should confirm the hypothesis that institutional investors do “see Ethereum staking as a good yield-generating strategy”.

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The Chainalysis report also advises ETH to attract more retail and institutional traders after the merger, as the upcoming update will make staking a much more attractive investment tool.

The currently-staked ETH is locked in a smart contract that cannot be withdrawn until the Shanghai upgrade occurs approximately six to 12 months after the merger.

As such, the market for staked ETH is currently illiquid, leading to some

Chainalysis suggests ETH may decouple from other cryptocurrencies post-merger as its staking rewards could make it similar to bonds or raw materials.

New

Crypto-analytics firm Chainalysis has suggested that the price of Ether (ETH) may decouple from other crypto assets post-merger as staking returns may drive strong institutional adoption.

In a report on Wednesday, Chainalysis explained that Ethereum’s upcoming upgrade would introduce institutional investors to stake similar returns to certain instruments such as bonds and commodities while becoming much more eco-friendly. environment.

The report states that staking ETH is expected to offer a 10-15% annual return for stakers, making ETH an “attractive bond alternative for institutional investors” given that bond yields Treasury offer much less in comparison

“Ether’s price may decouple from other cryptocurrencies after the merger, as its staking rewards will make it similar to an instrument like a bond or a commodity with a carry premium.”

According to data from Chainalysis, the number of institutional ETH stakingrs – those holding $1 million worth of ETH or more – has “increased steadily” from less than 200 in January 2021 to around 1,100 in August of this year.

The company notes that if this number increases at a faster rate post-merger, it should confirm the hypothesis that institutional investors do “see Ethereum staking as a good yield-generating strategy”.

p>

The Chainalysis report also advises ETH to attract more retail and institutional traders after the merger, as the upcoming update will make staking a much more attractive investment tool.

The currently-staked ETH is locked in a smart contract that cannot be withdrawn until the Shanghai upgrade occurs approximately six to 12 months after the merger.

As such, the market for staked ETH is currently illiquid, leading to some