Share this article
The New Crypto Cycle Will Be About Ether Yields: Bernstein
Ether staking trends following the Shanghai upgrade have beaten expectations, the report said.
By Will Canny
Updated May 16, 2023, 8:04 a.m. Published May 16, 2023, 8:04 a.m.
Pressure on zero-yield generating bank deposits is expected to continue, which makes ether yields more attractive, Bernstein said in a research report on Monday.
Currently, the flight is from bank deposits to the U.S. Treasury money markets, but as the ether yield economy becomes more mainstream, “it is hard not see more demand for ETH deposits and ETH yields,” analysts Gautam Chhugani and Manas Agrawal wrote.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
Bernstein notes that in the “hierarchy of yields,” money market yields at peak rates are the obvious choice for investors, but these are in U.S. dollars, a fiat currency base.
Ether holders are seeing nearly one month waiting period for setting up as network validators on Ethereum.
Read more: Ether Holders Embrace Near Month-Long Wait for Staking ETH
“Any hard landing leading to a decline in rates and USD debasement would immediately make ETH yields in ETH terms extremely attractive,” the note said. Ether yield is denominated in ETH, and the cryptocurrency continues to remain deflationary, the note added.
These yields are directly linked to Ethereum ecosystem activity, which continues to see increased adoption from both retail and institutional investors, the analysts wrote.
“The new crypto crypto cycle will be about yield this time,” the report said. Banks make money by not sharing yields with savers, “Ethereum shares all that it makes with stakers and does not dilute its monetary policy,” the report added.
Ether staking trends post the Shanghai upgrade have beaten expectations, Bernstein said, with the amount of ether staked as a percentage of total ETH reaching around 15%, an increase of 2% since the upgrade, addressing any concerns of a supply overhang.
Read more: The Biggest Crypto Bull Cycle Is Upon Us: Bernstein
More For You
What to know:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
French Banking Giant BPCE to Roll Out Crypto Trading for 2M Retail Clients
The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq.
What to know:
- French banking group BPCE will start offering crypto trading services to 2 million retail customers through its Banque Populaire and Caisse d’Épargne apps, with plans to expand to 12 million customers by 2026.
- The service will allow customers to buy and sell BTC, ETH, SOL, and USDC through a separate digital asset account managed by Hexarq, with a €2.99 monthly fee and 1.5% transaction commission.
- The move follows similar initiatives by other European banks, such as BBVA, Santander, and Raiffeisen Bank, which have already started offering crypto trading services to their customers.
Top Stories
