A leading asset management firm, Bernstein, has noted that Ethereum’s (ETH) risk-reward ratio appears attractive due to its recent underperformance. Gautam Chhugani, the managing director of Bernstein’s global digital assets division, emphasized that the total supply of Ethereum 
$3,359 has remained largely stagnant since the network transitioned to proof-of-stake and adopted a burning mechanism.
Ethereum’s Supply Status
Chhugani pointed out that Ethereum’s transaction fees provide a stable yield of approximately 3% to ETH stakers, which has resulted in about 28% of the ETH supply being locked in staking contracts. Furthermore, around 10% of ETH is currently bridged within Deposit/Lending contracts on the blockchain and layer-2 networks.
“Ethereum’s infrastructural transaction fees provide a steady yield of around 3% to ETH stakers, leading to approximately 28% of ETH supply being locked in staking contracts.” – Gautam Chhugani
Rise of Ethereum ETFs
Chhugani mentioned that Ethereum exchange-traded funds (ETFs) are gaining momentum, potentially further strengthening the asset’s demand dynamics. He also suggested that ETH ETFs might soon include staking yields.
“The approval of ETH ETFs has excluded asset managers from providing basic ETH yields to ETF holders due to regulatory constraints. We believe that under the new crypto-friendly SEC, ETH staking yields are likely to be approved.” – Gautam Chhugani
Lastly, he noted an increase in Ethereum’s blockchain activities, which represent 63% of the total value locked (TVL) in the network. TVL refers to the amount of capital invested in a protocol’s smart contracts and is used to measure the health of the crypto ecosystem.
While acknowledging that Solana 
$197 (SOL) leads in terms of individual users, Chhugani stated that Ethereum remains ahead on the institutional front. Overall, the dynamics of Ethereum’s supply and demand appear positive. The high staking rates and the rise of ETFs indicate promising signals for ETH’s future performance, while the substantial TVL ratio illustrates the ecosystem’s health and supports sustained institutional interest.
