{"id":17389,"date":"2024-09-30T13:33:00","date_gmt":"2024-09-30T10:33:00","guid":{"rendered":"https:\/\/forklog.com\/en\/falconx-highlights-benefits-of-fed-rate-cuts-for-ethereum\/"},"modified":"2024-09-30T13:33:00","modified_gmt":"2024-09-30T10:33:00","slug":"falconx-highlights-benefits-of-fed-rate-cuts-for-ethereum","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/falconx-highlights-benefits-of-fed-rate-cuts-for-ethereum\/","title":{"rendered":"FalconX Highlights Benefits of Fed Rate Cuts for Ethereum"},"content":{"rendered":"

By mid-2025, the Federal Reserve’s Fed<\/span> key rate is expected to fall below the yield from staking in Ethereum, potentially boosting the price of the second-largest cryptocurrency by market capitalization. This conclusion was reached by FalconX<\/a>.<\/p>\n

The spread between these two parameters has remained negative since mid-2023. At the end of 2022, following the collapse of FTX, the opposite situation was observed.<\/p>\n

\"1-1228\"
Data: FalconX.<\/figcaption><\/figure>\n

Futures market traders anticipate a reduction in the Fed’s key rate to 3.5% by June 2025 with a 90% probability<\/a>. On September 18, the Federal Reserve lowered its range by 50 basis points to 4.75-5%. At the time of writing, the staking reward for the second-largest cryptocurrency by market capitalization is estimated at 3.19%<\/a>.<\/p>\n

\"2-903\"<\/a>
Data: CME FedWatch.<\/figcaption><\/figure>\n
\n

“It remains to be seen how attractive staking will be compared to the risk-free rate amid a full bull run in Ethereum,”<\/em> the report states.<\/p>\n<\/blockquote>\n

Recently, amid a revival in on-chain activity, the average fee on the network of the second-largest cryptocurrency by market capitalization surged to its highest level in nearly two months. This metric’s increase leads to higher staking yields.<\/p>\n

\"3-510\"
Data: FalconX.<\/figcaption><\/figure>\n

Transaction fees still account for only 10-20% of the levels observed during the previous two bull markets.<\/p>\n

\n

“Improving staking yield dynamics could become a powerful supporting factor for the asset’s price recovery,”<\/em> experts concluded.<\/p>\n<\/blockquote>\n

In July, the SEC<\/span> approved<\/a> S-1 filings for spot Ethereum ETFs. These exchange-traded funds do not provide staking rewards. Hester Peirce of the Commission assured at the time that “any feature of the products is always open for review.”<\/p>\n

On September 28, the asset volume in BlackRock’s iShares Ethereum Trust exceeded $1 billion.<\/p>\n

During the past reporting week, ETH-ETFs attracted $84.5 million, breaking a streak of outflows since mid-August.<\/p>\n","protected":false},"excerpt":{"rendered":"

By mid-2025, the Federal Reserve’s Fed key rate is expected to fall below the yield from staking in Ethereum, potentially boosting the price of the second-largest cryptocurrency by market capitalization. This conclusion was reached by FalconX. The spread between these two parameters has remained negative since mid-2023. At the end of 2022, following the collapse […]<\/p>\n","protected":false},"author":1,"featured_media":17388,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"","news_style_id":"","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1178,1289,46,1249],"class_list":["post-17389","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-blockchain-fees","tag-cryptocurrency-staking","tag-ethereum","tag-federal-reserve-system"],"aioseo_notices":[],"amp_enabled":true,"views":"15","promo_type":"","layout_type":"","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17389","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=17389"}],"version-history":[{"count":0,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/17389\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/17388"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=17389"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=17389"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=17389"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}