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.”
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Featured Image: Shutterstock/Titima Ongkantong/monkographic