ETH Staking Yields Crumble Amid Rising Treasury Bond Returns
Ethereum staking yields are under pressure due to rising Treasury bond returns. The fixed protocol issuance spreads across more participants, forcing individual staking yields to drop as the total amount of staked ETH reaches 32 percent of the supply.
The Federal Reserve keeps interest rates at 3.63 percent, while Ethereum solo staking rewards sit between 3.2 and 3.8 percent, making staking less attractive compared to Treasury bonds.
According to data, MEV income accounts for 30 percent of validator income and depends on transaction volume and priority fees. During the DeFi slowdown in 2024 and 2025, MEV per validator decreased.
The recent Ethereum price rally of 37 percent in 10 days defies expectations as rising Treasury yields usually put pressure on growth assets. Institutional demand for ETH, including US spot ether exchange-traded funds, saw net inflows exceeding $1 billion to offset the pressure from rising Treasury yields.