Ethereum 2.0 Network May Kick-Start $40 Billion Staking Industry: JPMorgan

A recent report by JPMorgan says that Ethereum 2.0 will be able to publicize the PoS consensus mechanism and make staking yields a bit more impressive source of income. Ethereum will be able to complete its update from proof of work (PoW) to the proof of stake (PoS) next year, and then, the analysts at JPMorgan are expecting the payout to be doubled.

Ethereum 2.0 Network Will Create a Hype in Proof of Stake Industry: JPMorgan

In accordance with a recent report published by JPMorgan, the introduction of the energy structure Ethereum 2.0 network will surely boost the PoS concord contraption.

As estimated by the authors of the report, the holders of the staked coins on the proof of stake blockchains are creating some $9 billion in revenue at present per year from their staked holdings 

Moreover, the authors believe that the staking yields will be doubled to quadrupled to $40 billion by 2025.

Comparing the financial incentives with the stake cryptocurrencies, to cash equivalents, and US Treasury bonds, the two analysts said:

“Yield earned through staking can mitigate the opportunity cost of owning cryptocurrencies versus other investments in other asset classes such as US dollars, US Treasuries, or money market funds in which investments generate some positive nominal yield. In fact, in the current zero rate environment, we see the yields as an incentive to invest.”

Positive Yields of PoS Coins Attractive 

Along with the appreciation in the price of cryptocurrencies, the analysts find the positive returns of the PoS coins impressive as they revealed:

“Not only does staking lower the opportunity cost of holding cryptocurrencies versus other asset classes, but in many cases, cryptocurrencies pay a significant nominal and real yield.”

In addition to this, it should be noted that the Proof of Stake coins are not the only cryptocurrencies that are in the eyes of JPMorgan at present as they are planning to offer some of their selected clients, exposure to Bitcoin Fund.