Coinbase noted in a report that the Ethereum validator queue has emptied for the first time since the Shanghai upgrade in May, indicating that investor demand for Ethereum staking is leveling off and the staking yield has also dropped from 5% to 3.5%. .
Coinbase said that if underlying activity and transaction fees on the network remain stable, it expects staking yields to remain flat due to slower validator growth. Activity on the Ethereum mainnet remained stable in the third quarter, while total transaction volume increased.
The report also adds that since there have been no major Ethereum protocol upgrades prior to the Dencun upgrade, there are no major technical drivers that will have a meaningful impact on on-chain activity. (CoinDesk)