Yield farming yield falls short of short-term US bonds? Ethereum staking fervor drops sharply, with prices falling back to March levels

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Ethereum Staking Significantly Cools Off

According to Validator Queue, the wait time for staking on Ethereum reached as long as 45 days in early June, but has now decreased to around 4 hours.

As of October 13, there were still approximately 470 users in line to become validators, a far cry from the peak of 96,508 in June.

CoinDesk quoted David Lawant, research director at FalconX, stating that interest in staking surged after Ethereum's merge in September 2022, transitioning to proof of stake and the Shapella upgrade, but has gradually waned.

Ethereum Staking Rewards Decrease

According to CoinDesk's Comprehensive Ethereum Staking Rate (CESR), due to reduced on-chain activity and continuous increase in stakers, staking rewards have dropped from 5% - 6% to around 3.5%.

Meanwhile, short-term US Treasury rates have exceeded 5%.

Ethereum Staking Rate Still Extremely Low

Staking Rewards data shows that while Ethereum's staking rate has grown from 6.5% in September last year, 15% in April this year, to the current 22.49%, it still lags behind other public chains:

• Sui: 81.76%

• Aptos APT: 81.49%

• Solana SOL: 70.39%

• Cardano ADA: 63.38%

• Avalanche AVAX: 57.88%

ETH Drops Back to March Levels

On October 12, ETH briefly fell to $1,521, breaking the low point of September 11, the last time this price level was seen was in early March this year.

Although ETH did not drop alone but fluctuated with the overall crypto market, its decline this year has indeed been higher than BTC, with ETH/BTC falling by about 20% this year.

Market Recap: US stocks continue to rise, Bitcoin falls below 27K, long bond yields remain high implying rate hikes