July 4, 2021 / Business

JPMorgan: Ethereum Upgrade Helps Staking Market Grow To $ 40 Billion

Crypto companies generate $ 9 billion in staking revenue per year.

Investment bank JPMorgan analysts argue that blockchains using more energy efficient networks than bitcoin will grow in popularity. Forbes writes about this with reference to an investment bank review.

  • Researchers predict that Ethereum’s transition to the Proof-of-Stake (POS) algorithm after the full launch of ETH 2.0 could lead to an increase in staking payments to digital asset holders to $ 20 billion after the launch of the update and to $ 40 billion by 2025, Forbes reports.
  • Staking generates $ 9 billion in revenue per year for exchanges and other intermediaries, according to the report. JPM believes the market will be able to generate even more profits in the future. He estimates that staking will bring Coinbase $ 200 million in revenue in 2022, up from $ 10.4 million in 2020.
  • The bank’s analysts say staking and depositing in DeFi is far more profitable than the traditional banking system, where interest rates are minimal or even negative in many markets.
  • The current market capitalization of blockchain tokens that use Proof-of-Stake exceeds $ 150 billion.The authors predict that the opportunity to generate income through the use of their cryptoassets for staking will make digital assets more attractive, including for institutional investors.
  • According to the site stakingrewards.com, cryptocurrency escrow can generate income of 4% to 10% per year. For example, the Winklevoss Gemini crypto exchange currently offers investors the opportunity to receive up to 7.4% annual return on accounts.

Recall that recently JPMorgan conducted a survey with the participation of about 3 thousand investors. It turned out that only 10% of the surveyed investment companies trade in digital assets. Of the remaining 89% of those, 22% said they might do so in the future.

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