According to a recent report by JPMorgan, the launch of the Ethereum 2.0 network will make staking a more attractive source of income for both institutional and retail investors in the future.
JPMorgan analysts estimate that staking out PoS blockchains currently generates around $ 9 billion in annual revenue.
When Ethereum completes its transition from Proof-of-Work (PoW) to Proof-of-Stake (PoS) consensus next year, the payout is expected to grow to $ 20 billion. At the same time, they also forecast that staking profits will double again to $ 40 billion by 2025.
That number is fully achievable if we look at current data on staking on platforms that are actually showing signs of positive change. Most notably, about $ 13 billion in ETH was transferred to the Ethereum 2.0 contract, as well as more than $ 30 billion in ADA, which was invested in investor enthusiasm for the platform.
JPMorgan takes it very seriously and estimates that Ethereum will be a pioneer flag in the macro staking trend. Because Ethereum 2.0 will mainly focus on energy saving and environmental protection, but the performance will not be reduced, even greatly improved.
Not only does staking reduce the opportunity cost of cryptocurrencies compared to other asset classes, but in many cases (especially in volatile markets) investors also receive a nominal return.
See more: Ethereum will reduce energy consumption by 99% thanks to the PoS mechanism of ETH 2.0
However, JPMorgan is preparing to give customers the chance to invest in a Bitcoin fund for the first time, which could hit the market as early as this summer. This new product, unlike the passive Bitcoin funds from Pantera Capital and Galaxy Digital, can be actively managed.
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