Amid a warming cryptocurrency market, Ethereum (CRYPTO: ETH) staking yields are on track to surpass the federal funds rate, emerging as a “powerful supporting narrative” to drive the price of the world’s second-largest cryptocurrency.
What Happened: The gap between Ethereum’s Composite Staking Rate and the Effective Federal Funds Rate, which has been negative since June 2023, was currently at its highest since December 2023, research by cryptocurrency brokerage firm FalconX showed.
The spread was likely to decrease and eventually turn positive in the upcoming quarters, the research added, citing two factors.
Firstly, the researchers anticipated further cuts in interest rates by the Fed, after the agency enacted an aggressive 0.5% slash earlier this month. According to CME’s FedWatch Tool, the target federal funds rate showed 85% odds of going below 3.50-3.75% by …
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