Blockdaemon Blog

Blockdaemon Ethereum Newsletter || June 2024

Ethereum Newsletter
Jun 18, 2024
This month's newsletter explores what the Ethereum ETF means for staking, why EigenLayer has room to grow but at higher risks, and a recent Ethereum vs. Solana debate hosted by Bankless.

In this month’s newsletter:

  • What the ETH ETF Approval means for Staking
  • Restaking - Room to Grow but at Higher Risks
  • Ethereum vs. Solana - the great debate

What the ETH ETF Approval means for Staking

As reported by Unchained, the SEC's likely exclusion of staking from ETH ETFs means ETF investors will miss out on staking rewards. 

  • This setup transfers value to those who stake their ETH via protocol inflation, indirectly enhancing their rewards. 
  • Institutions that offer products that incorporate staking rewards could gain a competitive edge over ETFs. 
  • ETPs with staking as a key selling point already exist in other jurisdictions.

Ultimately, if successful, an ETH ETF will be a positive tailwind, and set the stage for further institutional participation - with or without staking.
Read our blog article for more details! 

Image Source: Blockdaemon Blog

Restaking - Room to Grow but at Higher Risks

With the initial excitement about the EigenLayer Mainnet launch and the introduction of the $EIGEN token subsiding a little, it is a good time to zoom out: About 27% of all 120m $ETH is staked, and only 4% is restaked. So there is definitely room to grow, as restaking matures and EigenLayer competitors will launch. However, we do expect complexity and risks to remain significantly higher than staking and liquid staking. But as normal staking gets more and more commoditised, the additional rewards can make a difference!

We’ll keep you posted and welcome your questions - just reply to this email!

Image Source: Blockdaemon presentation given at Consensus

Ethereum vs. Solana - the great debate

The fantastic 2 hour Bankless podcast between Justin Drake (Researcher at Ethereum Foundation) and Anatoly Yakovenko (Co-Founder of Solana Labs) contained a lot of controversy: It’s a great chance to hear different takes on the importance of MEV, if economic security is just a meme, and the respective advantages of monolithic vs modular blockchain architectures.

Personally, I highly appreciated being challenged against some fundamental beliefs of my Ethereum-centric mindset. While I am unsure about the “endgame” technologically, I would advise everyone to use the opportunity to question one’s beliefs and importantly also include the different approaches and culture/characters of various ecosystems.

Image Source: Bankless on X

Blockdaemon Resources

Previous Ethereum Newsletters 

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