Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

JPMorgan Bullish On Ethereum

By Crypto BriefingCryptocurrencyJul 02, 2021 06:50AM ET
www.investing.com/analysis/jpmorgan-bullish-on-ethereum-200589490
JPMorgan Bullish On Ethereum
By Crypto Briefing   |  Jul 02, 2021 06:50AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Analysts at the investment bank predict staking rewards will hit $40 billion by 2025.

Ethereum’s shift to Proof-of-Stake could kickstart mainstream adoption and increase payouts, say two senior analysts at JPMorgan (NYSE:JPM) in a recent report.

JPMorgan Backs Ethereum Staking

JPMorgan thinks the cryptocurrency staking sector is poised for growth, according to a recent report.

In the report, two analysts explain how Ethereum’s planned move to Proof-of-Stake will increase adoption as institutions and retail investors take advantage of the high yields generated by staking. Ethereum is scheduled to complete “the merge” from Proof-of-Work to Proof-of-Stake after shipping its EIP-1559 update.

Staking across all cryptocurrencies generates an estimated $9 billion annually. The report predicts that this figure could increase to $20 billion following Ethereum’s move to Proof-of-Stake. A final prediction in the report puts total staking rewards at $40 billion by 2025.

Proof-of-Stake is a method of securing a network; users can stake their tokens to help validate transactions and maintain consensus on the blockchain. In return, those staking their tokens receive rewards.

According to JPMorgan, staking yields could be a key consideration for institutional investors. The report states:

“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.”

Additionally, the report states that declining volatility and a drop in power consumption will be important factors leading to mainstream adoption. JPMorgan has been showing clear interest in crypto over the last few months, recently recommending a 1% Bitcoin allocation in portfolios and indicating that it plans to offer crypto-related products to clients.

Ethereum 2.0, a set of updates that will see the network adopt Proof-of-Stake, has been anticipated for years. After numerous setbacks, it’s expected to ship in late 2021 or early 2022.

There’s currently over $12 billion locked up in the Ethereum 2.0 staking deposit contract, generating an APR of approximately 6.4%. However, ETH staked on the network cannot be withdrawn until the Ethereum 2.0 update goes live, making some people reluctant to stake their assets.

Original Post

JPMorgan Bullish On Ethereum
 

Related Articles

Jason Sen
Cryptocurrency Forecast By Jason Sen - Sep 17, 2021

Bitcoin edges higher through first resistance at 47000/47500 for a more positive outlook…as long as we hold above here this weekend. Ripple stable and holding first resistance at...

Gregor Horvat
EOS/USD: Be Aware Of Reversal Down By Gregor Horvat - Sep 17, 2021

As per Elliott Wave analysis, EOS/USD is similar as other cryptocurrencies, where we are tracking a minimum three-wave A/1-B/2-C/3 reversal down, so current a-b-c recovery should...

JPMorgan Bullish On Ethereum

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email