Andy Baehr, Head of Product and Research at Coindesk Indices, joins Remy Blaire at the New York Stock Exchange to discuss Ethereum, which has grown to become the second largest blockchain in the crypto space since its launch in 2015.
The pair explore Ethereum’s transition from a mining mechanism to a staking mechanism, which allows users to secure the network by committing their ETH in exchange for a yield of around 3%. This democratized approach has led to about 25-30% of all Ethereum being staked, providing a steady yield for participants.
Andy also sheds light on the recent performance of ETH, which has more than doubled since its low in April, and the implications of the validator queue. The time to unbond from validator networks has increased, raising concerns about potential selling pressure. However, the pair broke down how recent changes in the validator framework might indicate a technical effect rather than a bearish signal.