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A Senior Commodity strategist, Mike McGlone from Bloomberg said that two altcoins are outshining Ethereum (ETH) when looking at one particular metric. With Jamie Douglas Coutts, McGlone released the latest Bloomberg Intelligence: Crypto Outlook report. In the report they added that in terms of its fee structure and issuance system, Ethereum derives strong dominance over much of the market.
Crypto Outlook Report
As mentioned in the linkedIn post, the analysts have stated that there are two blockchains that outperform Ethereum as far as staking yield. These altcoins include interoperable blockchain Polkadot (DOT) and Cosmos (ATOM), an ecosystem of blockchains designed to scale and communicate with each other.
According to the report, “As a result of Ethereum’s dominant market share in fee income and sound monetary (issuance) policy, capital deployment in the crypto economy is likely to start pricing risk relative to Ethereum’s real/adjusted rate (yield). On Bloomberg’s list of layer-1 crypto assets, only two networks have real yields that trade with a positive spread to Ethereum’s benchmark rate of 5.03%. Polkadot trades at a 0.77% premium while Cosmos is at a 0.10% premium. The assets which trade at negative spreads may be victims of mispricing. Inflation/issuance for these assets may need to undergo a radical reduction, similar to Ethereum, in order to attract more capital.”
Furthermore, “The emergence of crypto as an asset class in conjunction with a yield component presents a new set of considerations for investors when assessing the risk/reward opportunities in this space. Given the volatility and newness of the demand for smart contract use, staking assets could be considered as equivalent to junk bonds. Yields for proof-of-stake are similar to corporate bonds in that they’re tied to the fees/cash flows of the network/company.”
The strategist further said that staking has brought a new dimension to investing in crypto, and they compare it to investing in corporate bonds. Moreover, a rise in staking yields is to be expected potentially early in the first half of 2023, when the strategist suppose that central bank liquidity could improve.
Polkadot Price Prediction
It can be seen that the crypto community is bullish about Polkadot (DOT) for the next few weeks. The price prediction is that Polkadot (DOT) might increase by 20% by 31st October. It means this coin may be some of the best rewards this month. Many Polkadot developments coming up will make this coin adoption increase in the next few weeks. The current Polkadot price is $6.36 USD with down 0.54% in the last 24 hours.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
