Ethereum Staker Revenue Plummets as Network Activity Slows

The Ethereum network, one of the foremost blockchain platforms, has faced yet another setback as the average revenue for stakers has significantly decreased in recent days, reflecting a decline in user engagement and interest among stakers.

Ethereum’s Stakers Experience Reduced Returns

In a concerning trend, Ethereum’s average staking revenue has plummeted, hitting new lows amidst a slowdown in network activity. Participants in Ethereum‘s proof-of-stake mechanism are encountering diminished rewards due to reduced demand and fewer transactions on the network, heavily affecting their staking returns.

Kyle Doops, a prominent market analyst and host of the Crypto Banter show reported this downturn on the X (formerly Twitter) platform. The reduction in staking yields stems from various factors, including lower transaction volumes, which align with a broader market decline.

As per the analyst’s insights, Ethereum’s average staker revenue has sharply dropped to a 6-month low over the past week. On September 12, the recorded revenue stood at approximately $5.44 million.

He pointed out that transaction fees also saw a downturn as network activity dwindled, significantly affecting the earnings of stakers. Additionally, both transaction volume and on-chain activity have plummeted, descending from March peaks to levels reminiscent of February 2024.

The average staker revenue is just one of several indicators that has significantly dropped in the last few days. Ethereum’s futures market funding rates have also fallen to all-time lows.

Kyle Doops disclosed that the futures market is currently experiencing its lowest funding rates of 2024, reflecting a continued bearish trend. As funding rates sink to new levels, traders seem increasingly cautious, indicating a growing disparity between long and short positions in the market.

With the 50-day average funding rate displaying a persistent bearish trend, interest in buying appears to be waning. Unless perpetual futures or spot markets witness a surge in demand, Kyle Doops believes that the price of ETH could remain subdued.

Do Recent Trends Indicate a Potential Rise for ETH?

Despite these adverse developments, Ethereum’s price is gradually gaining ground as indicated by CoinMarketCap. At the moment, ETH is priced at $2,326, representing an increase of approximately 0.61% in the last 24 hours. However, this price was reclaimed after ETH faced significant resistance at the $2,388 mark yesterday, leading to a drop to $2,300.

While ETH has shown a slight recovery over the past day, the weekly and monthly trends indicate that the cryptocurrency has declined by more than 0.50% and 11.14% respectively. Additionally, ETH’s market capitalization and trading volume have risen by 0.60% and 14% in recent times, suggesting that investors are optimistic about the digital asset’s potential resurgence.