JPMorgan: Ethereum 2.0 could trigger a $40 billion industry. JPMorgan Chase analysts announced that the total amount of revenue from staking in the cryptocurrency world could reach $ 40 billion after the Ethereum (ETH) blockchain fundamentally transitioned to the proof-of-stake (PoS) algorithm.
According to Forbes, a new report by JPMorgan Chase analysts examined how updates to the Ethereum network could affect the cryptocurrency industry.
- JPMorgan has determined that crypto users are making a total of $9 billion in revenue by staking today.
- It is estimated that this number may increase to $ 20 billion in the quarters after the transition to the Ethereum PoS algorithm, and to $ 40 billion by 2025.
- JPMorgan analysts stated that “not only does staking reduce the opportunity cost, it also offers (users) a significant return.”
- Referring to the US dollar, treasury bonds and money market funds, analysts said these returns could “encourage people to invest”.
The growth in the staking market is also expected to be reflected in brokerage platforms such as Coinbase. JPMorgan’s prediction is that Coinbase, which generated $10.4 million in revenue from staking transactions in 2020, could generate $200 million in revenue from the same transactions in 2022.
Ethereum developers have started to experience the London update on the Ethereum 2.0 path on testnets. It is not known when the update, which includes packages such as EIP-1559, will come to life on the mainnet.