Eth2 could fuel the $ 40 billion staking industry by 2025

According to a new report from JPMorgan, the launch of the energy-efficient Ethereum 2.0 network will popularize the proof-of-stake consensus and make staking a more attractive source of income for both institutional and investors.

The authors estimate that the stakeholders of the PoS blockchain currently generate annual sales of around 9 billion US dollars from their investments.

When Ethereum completes its transition from Proof of Work (PoW) to Proof of Stake (PoS) next year, analysts expect the payout to more than double to $ 20 billion. They predict that blockchain industry revenues will double to $ 40 billion by 2025.

The two senior analysts also compared crypto-custody financial offerings with cash, cash equivalents, and fixed income instruments such as US Treasuries:

“Returns generated by staking can minimize the opportunity costs of owning cryptocurrencies compared to other investments in other asset classes such as US dollars, US government bonds or market funds. Currencies in which investments generate a certain positive nominal return. In fact, in the current zero exchange rate environment, we see returns as an incentive to invest. “

Among the top ten cryptocurrencies by staking capitalization, annual staking rewards range from 3% to 13%, according to StakingRewards. While these are nominal returns, their real ROI also depends on the market value of the underlying currency.

JP Morgan analysts find the positive real return of PoS coins attractive next to any expected market upward trend and write:

“Not only does staking reduce the opportunity cost of holding crypto compared to other asset classes, but in many cases, crypto pays a significant nominal and real return.”

The proof-of-stake coin isn’t the only cryptocurrency that is seriously treated by JPMorgan. The financial services giant is reportedly preparing to offer a bitcoin fund to some customers. It could start this summer.

This new crypto product can also be actively managed, unlike similar passive bitcoin funds offered by Pantera Capital and Galaxy Digital.