#ETH
While Bitcoin recently grabbed headlines with a new all-time high, Ethereum (ETH) has emerged as the more lucrative investment, boasting an impressive year-to-date return of 68.13%.
Despite Bitcoin's robust and dedicated community, Ethereum's role as the foundational layer for the majority of blockchain applications has propelled its performance.
The widespread adoption of Ethereum as an infrastructure layer positions ETH holders to participate in network fees through native staking.
The appeal of Ether lies in its extensive adoption, deflationary characteristics, and the native yield it provides.
As network usage fluctuates, ETH's native yield experiences variability, influencing its attractiveness, particularly for institutional and non-crypto-native audiences.
To enhance ETH's appeal, there may be a need for products facilitating fixed-yield ETH staking.
Looking ahead, the future of ETH staking appears promising, especially with the increasing institutional interest in Ethereum.
Staking-focused DeFi protocols such as Lido and EigenLayer, the latter surpassing Aave to become the second-largest DeFi protocol, underscore the growing importance of native ETH yield. Notably, asset managers like ETC Group and CoinShares have introduced total-return ETPs incorporating a staking yield bonus alongside ETH token performance.
In the US, Franklin Templeton and Grayscale are also exploring the integration of staking into their proposed ETFs.
Beyond the realm of ETH, Grayscale's announcement of the actively managed Dynamic Income staking fund emphasizes the significance of income-focused products in the ecosystem.
As investor familiarity with the asset class expands, staking yields are poised to become a crucial component for serious ETH-based products and services.
