Staked ether (stETH) is increasingly becoming a benchmark for the crypto economy, akin to the fed funds rate in traditional finance. According to ARK Invest, the yield on staked ether has become a significant indicator of smart contract activity and economic cycles. Currently, staked ether offers a 3.27% annualized yield, providing a more reliable investment compared to traditional sovereign bonds, as Ethereum’s structure prevents defaults on staked funds. However, staked ether is still subject to inflation and volatility, posing unique risks compared to traditional bonds. The growing popularity of staked ether is reshaping the decentralized finance (DeFi) space, with stETH being favored as collateral in various lending protocols. This shift indicates that projects must provide higher risk-adjusted returns to compete against staked ether's compelling yields. As staked ether gains traction, it is poised to influence investment behaviors throughout the crypto economy.

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