From Cointelegraph

June 18, 2025 2:40:00 pm:

Ethereum’s staking yield drops below 3%, falling behind DeFi and RWA protocols. Stablecoins like sUSDe and SyrupUSDC offer 4–6.5% returns, gaining market share. Ethereum faces competition from other yield products, potentially impacting its value. DeFi lending platforms on Ethereum offer higher yields, raising questions about Ethereum’s position in the yield battle.

Ethereum’s staking yield comes from consensus and execution rewards. With over 35 million ETH staked, the yield has fallen from 5.3% to under 3% post-Merge. Solo validators earn the full yield, while others opt for liquid staking protocols with fees. Despite the decline, Ethereum’s yield remains competitive compared to Solana.

Yield-bearing stablecoins like sUSDe, sUSDS, and SyrupUSDC offer passive income tied to US Treasurys and synthetic strategies. sUSDe has historically yielded 10-25%, while SyrupUSDC now yields 6.5%. Differences in collateral, risk, and accessibility define these stablecoins. The sector has grown by 235% in the past year.

DeFi lending platforms on Ethereum, like Aave and Compound, allow users to earn yield by supplying assets to lending pools. Rates are determined by supply and demand dynamics, with stablecoin lending rates around 5% for USDC. DeFi lending yields are market-driven, offering higher returns but exposing lenders to unique risks.

Read more at Cointelegraph.: Ethereum Yield Versus Defi and Stablecoins