The recent surge in the US 10-year Treasury Yield has impacted Ethereum more than Bitcoin, as the staking payout on pledged tokens has dropped to an annualized 3.5%, nearing the lowest level in at least 10 months and significantly below a recent peak of over 8%.

This return falls below the 5% yields provided by US government bonds, highlighting how the allure of the cryptocurrency market has waned due to the shift away from ultra-low interest rates during the pandemic. Ether's year-to-date increase of 32% falls behind Bitcoin's impressive 77% rally during the same period, and the quantity of staked Ether coins has recorded a significant decline, falling by 67% to 1.2 million in September compared to May.