Ethereum (ETH-USD) is showing signs of recovery after a year of underperforming compared to Bitcoin. Recent data from Bernstein suggests that Ethereum’s underperformance may be coming to an end, fueled by a surge in exchange-traded fund (ETF) inflows and increased blockchain activity.
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Ethereum ETF Inflows Surge, Outpacing Bitcoin
Ethereum’s momentum is gaining strength as Blackrock’s Ethereum spot ETF (ETHA) saw a staggering $250 million in inflows last Friday, surpassing Bitcoin’s $137 million. Bernstein analysts highlighted this as a clear sign of growing demand, noting, “This creates favorable demand-supply dynamics for ETH.” This uptick in investor interest could propel Ethereum to new heights in the coming months.
Staking Yields to Provide a Key Boost for Ethereum
Staking yields are another catalyst driving Ethereum’s recovery. With Ethereum’s transition to a proof-of-stake mechanism, its supply has remained stable at 120 million tokens, offering a steady yield for stakers. Bernstein also sees potential for Ethereum’s staking yields to rise to 4-5% as blockchain activity continues to grow. Bernstein believes that under a new, crypto-friendly SEC, these yields could soon receive official approval, adding further support for the cryptocurrency’s future growth.
At the time of writing, Ethereum is sitting at $3,582.56.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
