• Dapps:16.23K
  • Blockchains:78
  • Active users:66.47M
  • 30d volume:$303.26B
  • 30d transactions:$879.24M

Ethereum Treasuries Outperform Bitcoin in Yield Generation

user avatar

by Giorgi Kostiuk

10 hours ago


New research shows that Ethereum treasuries are becoming more profitable than their Bitcoin counterparts. However, they face unique challenges.

Advantages and Risks of Ethereum Treasuries

Research from Bernstein indicates that Ethereum treasuries can generate yield from staking, whereas Bitcoin treasuries rely on accumulation only. However, Ethereum treasuries face liquidity constraints and smart contract risks. Analysts noted that "the ETH treasury model has the benefit of actual cash flow yield driving operating earnings; however, liquidity risk and security would be important considerations."

Companies Invest in Ethereum Treasuries

Several companies, including SharpLing Gaming, Bit Digital, and BitMine Immersion, are focusing on accumulating Ethereum. In July 2023, their total stood at around 876,000 ETH, accounting for 0.9% of the total supply. BitMine Immersion also revealed plans to hold and stake around 5% of the total Ethereum supply.

Centralization and Risks on Decentralized Platforms

Bernstein warned about centralization risks related to token distribution and control. Key platforms such as Karpatkey and Llama are managed by a few core contributors, raising accountability concerns. Moreover, the lack of a clear legal framework threatens asset management.

Despite the risks and challenges, Ethereum treasuries continue to attract interest from companies and may set the foundation for new approaches to managing digital assets in the future.

0

Rewards

chest
chest
chest
chest

More rewards

Discover enhanced rewards on our social media.

Other news

U.S. Announces Strategic Bitcoin Reserve, Altering Crypto Policy Landscape

chest

The U.S. announces the creation of a Strategic Bitcoin Reserve to stabilize cryptocurrency markets and strengthen economic outlook.

user avatarGiorgi Kostiuk

Scrutiny Over Pump.fun's Buyback Program: Sustainability Issues

chest

Analysis of Pump.fun's buyback program and sustainability concerns with a 25% revenue cap.

user avatarGiorgi Kostiuk

Meme Currency MoonBull Captures Attention Amid BTC Fluctuations

chest

Bitcoin and meme cryptocurrencies like Goatseus Maximus and Sudeng show momentum, while new entrant MoonBull intensifies competition.

user avatarGiorgi Kostiuk

China Trade Talks: Key Signals and Global Implications

chest

Optimism surrounding the China trade talks is surging, which may influence the economy and cryptocurrency markets.

user avatarGiorgi Kostiuk

180 Life Sciences Transitions to Cryptocurrency After Stock Value Drop

chest

180 Life Sciences, previously focused on biotechnology, now pivots to cryptocurrency and blockchain in a bid to revitalize its operations.

user avatarGiorgi Kostiuk

Overview of Cryptocurrencies: MoonBull and its Competitors Turbo and Cat in a Dog’s World

chest

Exploring the rise of new meme coins such as MoonBull and its competitors Turbo and Cat in a Dog’s World, alongside market prospects.

user avatarGiorgi Kostiuk

Important disclaimer: The information presented on the Dapp.Expert portal is intended solely for informational purposes and does not constitute an investment recommendation or a guide to action in the field of cryptocurrencies. The Dapp.Expert team is not responsible for any potential losses or missed profits associated with the use of materials published on the site. Before making investment decisions in cryptocurrencies, we recommend consulting a qualified financial advisor.