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.
Don't Miss our Black Friday Offers:
- Unlock your investing potential with TipRanks Premium - Now At 40% OFF!
- Make smarter investments with weekly expert stock picks from the Smart Investor Newsletter
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.
