Analysts: Zero deposit rates will fuel people’s interest in Ethereum staking

Analysts at Bernstein Research believe that zero deposit rates will fuel people’s interest in staking Ethereum, which will become a driver for a crypto bull market. The company’s report says that the profitability of bank deposits will become zero.

Currently, experts are fixing the outflow of capital from deposits in US Treasuries. But with the growing popularity of staking, more and more funds will begin to flow into the cryptocurrency industry.

“It’s hard not to see an increase in demand for deposits and staking ETH. And in the event of a reduction in the base rate in the United States and a devaluation of the dollar, the profitability of staking ethereum will become extremely attractive, ”the analysts noted.

Experts point out that when staking Ethereum, the yield is expressed in ETH, and not in US dollars. At the same time, the crypto coin itself has been deflationary for quite a long time.

This is of interest to long-term investors. Just as important is the continued growth of the ETH ecosystem, which provides a guarantee for the growth of the price of ether.

“This time, the new cryptocurrency cycle will be based on the yield of cryptocurrencies. Banks keep all income for themselves, they do not share with depositors. Ethereum, on the other hand, gives everything away to stakers and does not dilute its monetary policy, ” the Bernstein report says.

According to Santiment, Ethereum holdings on crypto exchanges are currently at their lowest levels since mid-2015, when the crypto coin went public. This indicator indicates the number of ETH coins currently stored on exchange wallets.

According to Glassnode, a significant proportion of investors in ETH 2.0 are ready to stake their cryptocurrency on various DeFi protocols. They make money from it instead of just selling their own ethers. At the same time, an increase in the number of coins on staking causes a decrease in the supply volume on crypto exchanges, which can also support the growth of the digital currency.