A widely followed crypto analyst says that institutional interest in Ethereum (ETH) could grow after the second-largest digital asset by market cap transitions to a proof-of-stake consensus mechanism.
While explaining why he is holding Ethereum, the anonymous host of InvestAnswers tells his 444,000 YouTube subscribers that the second-largest crypto asset by market cap is expected to offer yields between 10% to 15% for annual stakers.
According to the analyst, ETH’s yield could be an enticing alternative to bonds for deep-pocketed investors.
“It is an enticing bond alternative for institutional investors. For the first time ever, we could get a lot of institutional money, people that historically invest in things like gold and bonds could come into the space and this will be a huge money flow.”
The InvestAnswers’ host also says that Ethereum’s dominance in decentralized finance (DeFi), the low regulatory risk it possesses and the fact that the proof-of-stake consensus mechanism is environmentally friendly are other reasons he holds the second-largest crypto asset by market cap.
“Ethereum also powers DeFi and also there’s no regulatory risk as we heard from Gary Gensler [U.S. Securities and Exchange Commission Chair] for the umpteenth time last week.
There’s also no ESG [Environmental, Social and Governance] FUD [Fear, Uncertainty and Doubt] because moving to proof of stake will burn no energy.
And finally, the reduced ETH issuance and increased burns will systematically Ethereum supply.”
I
Follow us on X, Facebook and TelegramDon't Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Titima Ongkantong/monkographic
