Ethereum: In 2025, ETH Staking Bonuses Could Beat the US Base Interest Rate

The interest rate cuts announced by the US Federal Reserve are proving to be positive for Bitcoin and Co. For Ethereum (ETH), a situation is emerging in mid-2025 in which staking bonuses will play a prominent role.

The key interest rates in the leading economies also have an impact on the crypto markets. In general, when key interest rates fall, Bitcoin and Co. usually react with gains. As long as high key interest rates are attractive for conservative savings plans, investors tend to avoid the risks on the crypto exchanges.

Against this background, 2025 could be a special year for Ethereum (ETH)

In the USA, the euro area, Great Britain and Canada, the central banks have initiated a turnaround in key interest rates. After the Corona-related high interest rate phase, key interest rates are now falling again – and for Ethereum, as the number two among cryptocurrencies, this could lead to an exciting constellation next summer.

You need to know: Since ” The Merge “, Ethereum has been able to generate automated bonuses through staking, with an annual interest rate of 3.25 percent currently being offered. In the eurozone, the key interest rate is currently 3.5 percent, while in the US it is still 4.75 percent.

But the Fed has already indicated further interest rate cuts and forecasts such as those from CME Group consider 3.5 percent for the US key interest rate in June 2025 to be likely. The analysts at FalconX have presented a report that compares the staking interest rates on Ethereum with interest rates on the US dollar.

Ethereum ETFs must forego staking

Only once in its history has Ethereum experienced ETH staking bonuses being higher than the largely risk-free bank interest rates, the analysis noted. But that was at the end of 2022, when the crypto markets went through a trough and crisis of confidence as a result of the FTX bankruptcy.

At the moment, however, the crypto industry is showing signs of recovery. From next summer, there could be a situation in which Ethereum staking promises higher profit opportunities than the key interest rate for the US dollar, it is said. But will Ethereum then really be an alternative to classic savings plans?

FalconX does not commit itself to a forecast. When it comes to Ethereum savings plans, the price development of ETH itself must of course also be taken into account. After all, what use is a good 3 percent interest in Ethereum if the ETH price curve is weakening?

A second, important factor: Ethereum ETFs have been traded in the USA since June and the financial instrument is a convenient solution for institutional investors. But Ethereum ETFs are not allowed to integrate ETH staking at the behest of the US Securities and Exchange Commission (SEC), so the interest rate comparison does not work there.

Conclusion: Ethereum as an alternative to fixed and overnight deposits?

Comparing Ethereum staking with the interest rates on overnight and fixed-term deposits is still more of a thought experiment. But if the expected returns actually converge by mid-2025, Ethereum could benefit from this. One of the decisive factors will then be whether the high staking bonuses on Ethereum continue and whether investors get involved in this still new method of using ETH primarily to earn interest.

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