- With Ethereum’s 5.03 percent benchmark, just two blockchains have yielded positively.
- With Polkadot offering better yield than ETH, Modular Asset Management’s crypto hedge fund has been purchasing the asset.
A recent Bloomberg report authored by Jamie Douglas and Mike McGlone has compared various Proof of Stake (PoS) staking yields. While comparing them to Ethereum, it was observed that only two PoS give a better yield than Ethereum. These are Cosmos and Polkadot. Analysis of Ethereum disclosed that it has a large market share in terms of fee income. In addition, the network relatively has a good monetary policy. For this reason, Capital deployment in the crypto market might price risk compared to the rate of Ethereum.
With Ethereum’s 5.03 percen benchmark, just two blockchains yielded positively. The traded premium of Polkadot is 0.77 percent with Cosmos sitting at 0.10 percent. According to the report, assets that trade negatively could become victims of Mispricing. In this case, their issuance or inflation would have to go through radical reduction.
Modular Asset Management’s hedge fund purchases more Polkadot
With Polkadot offering better yield than ETH, Modular Asset Management’s crypto hedge fund has been purchasing the asset. According to them, Polkadot and Algorand have stronger sustainability characteristics and have the potential to outperform after a $2 trillion shakeout in digital assets.
Its Chief Investment Officer Daniel Liebau has also disclosed in an interview that the Fund has increased its purchase of Cosmos in recent weeks. Since the Fund was launched on May 10, Polkadot has dropped by 43 percent with Algorand falling by 39 percent. Cosmos has, however, fallen by 6 percent.
Liebau also disclosed that they believe the adoption of platforms is linked to good sustainability characteristics in the digital asset markets.
Not all of these sustainability characteristics are clearly adding an excess return today.
According to Bloomberg Intelligence analyst Jamie Douglas Coutts, Modular is taking advantage of the trend where crypto is included in asset allocation and “ESG integration frameworks.”
Silicon Valley Venture Capitalist mentions some benefits of the Ethereum merge
Ethereum, which is one of the top networks, has been lauded by A Silicon Valley Venture Capitalist, Ali Yaha. According to him, the recent merge was an insane feat. In his statement, Yaha mentioned that the upgrade involves the hot-swapping of Ethereum’s most important component. In addition to this, the right up-time was maintained for all users.
Yaha further stated that Ethereum is now more than 100 percent power efficient than before. It is important to note that transactions that pass through PoS consensus are final. In this case, the finality would be the most important foundation for scaling. He believes that the merge was a bigger event that facilitates a world of efficiency. In addition, it provides a secure layer for computations that support decentralized apps.