- Investors are abandoning bank deposits
- They will be more active in choosing ETH stacking
The price of cryptocurrencies has been falling lately, and the bulls seem to be giving in to the bears.
But Bernstein analysts Gautam Chhugani and Manas Agrawal are very positive about the future prospects.
There is an outflow of bank deposits in the market right now because of their low yields and the risk of bankruptcy.
Depositors are instead moving to the U.S. Treasury money markets (rates are higher there).
But Bernstein expects ether steaking to become increasingly popular. Such a product offers high returns to investors.
It is important that the U.S. Treasury’s money markets are pegged to the dollar. Which means that if that currency weakens, so will the yields.
Unlike the dollar, ether is a deflationary asset. If the dollar collapses, ETH could sink for a while. After which it will recover and resume its bullish cycle.
“This time, the cause of the new cryptocycle will be the ether yield. Banks make money without sharing profits with depositors.
Ethereum shares everything it earns with steakers and does not dilute its monetary policy,” the report concludes.
Bernstein noted that ETH stealing trends since the Shanghai update have exceeded expectations.
The number of forked coins reached about 15% of the total supply of ether.
After the fork, it grew by 2%. And that negates any theories that Shanghai will lead to oversupply.