Ethereum (ETH) yields have fallen below 3%, raising concerns about its on-chain return competitiveness. Although ETH prices fluctuate between $2400 and $2800 and are subject to short-term volatility, bulls still maintain support. Among long-term investors, 29% of the circulating supply is involved in staking, but as the amount of staked ETH increases, the staking reward rate has dropped to about 2.987%. In contrast, other chains like Solana, Polkadot, and Cosmos offer higher staking yields, but their inflation rates are also significantly higher than Ethereum's. Yield-bearing stablecoins and DeFi lending protocols (such as Aave, MakerDAO, and Compound) provide higher passive income, with Aave's staking reward rate reaching 4.63%, surpassing ETH staking yields. Nevertheless, all these DeFi products are based on the Ethereum network, and their growth helps drive the adoption and transaction fees of the Ethereum network, enhancing ETH's long-term value. Ethereum continues to dominate the DeFi space, with a total value locked (TVL) share of up to 55.8%.

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