Ether Primed for 7% Surge as Stablecoin Yield Slump Signals Major Upside: Santiment Analysis

Stablecoin yields hitting rock bottom? That's apparently rocket fuel for Ether's next move.

The Yield Collapse Signal

When stablecoin returns evaporate, capital starts hunting for real gains—and Santiment's data suggests Ether's positioned to capture that flow. Their metrics point to a clean 7% jump ahead as money rotates out of stagnant stable positions.

Market Mechanics at Work

Low yields force investors to take on risk—or watch their portfolios decay from inflation. Crypto's volatility suddenly looks attractive when 'safe' returns can't beat a savings account. Another case of traditional finance making risky assets look reasonable by comparison.

The 7% Target Zone

Santiment isn't pulling numbers from thin air—their on-chain analysis shows specific accumulation patterns that typically precede these kinds of moves. When the big wallets start positioning, retail usually follows.

Timing the Rotation

This isn't about fundamentals or adoption narratives—it's pure capital migration physics. Money flows where it's treated best, even if that means dancing with volatility. Sometimes the best trade is simply betting against traditional finance's inability to offer decent returns.

Low Stablecoin Yields Signal Crypto Market Isn’t Overheated

Santiment tracks yields from major crypto lending protocols, where interest rates often reflect the amount of leverage flowing into the market.

According to the firm, stablecoin returns are sitting between 3.9% and 4.5%, a range that suggests borrowing demand remains subdued.

Historically, spikes in yields have coincided with speculative excess and trend reversals, making today’s comparatively low levels a sign that risk-taking is still measured.

The outlook follows a difficult month for Ether, which slid more than 21% over the past 30 days as part of a broader digital asset selloff.

The downturn accelerated after a steep $19 billion liquidation event on Oct. 10, which was compounded by renewed trade uncertainty following US President Donald Trump’s announcement of sweeping tariffs on Chinese imports.

Technical indicators are also starting to lean constructive.

Crypto analyst Matthew Hylandsaid the ETH-BTC weekly chart is approaching a “bullish ribbon flip” for the first time since mid-2020, a signal that in past cycles has marked the start of extended outperformance against Bitcoin.

Flows into exchange-traded products are adding to the shift in tone.

Spot Ether ETFs reversed course this week, drawing $312.6 million in net inflows after three weeks of sustained withdrawals, suggesting fresh interest from institutional buyers.

Santiment Improves as Sell-Off Eases

Sentiment across the market is improving as well.

The Crypto Fear & Greed Index, which spent 18 days in “extreme fear” in November, recently climbed back into the “fear” zone, hinting that panic-driven selling may be easing.

Seasonal patterns may also come into play. December has delivered an average return of nearly 7% for Ether since 2013, according to CoinGlass.

Still, with both October and November underperforming typical trends this year, traders remain cautious about leaning too heavily on historical playbooks alone.

As reported, ARK Invest CEO Cathie Wood has forecasted that the liquidity squeeze hitting crypto and AI markets will reverse within weeks, driven by three Federal Reserve policy shifts expected before year-end.

Her firm continues aggressively buying crypto equities during the downturn, deploying over $93 million in a single day this week across beaten-down digital asset stocks.