In a report released during the week, two JP Morgan analysts claimed that staking represents an important source of income for crypto investors.
“Staking generates no less than $ 9 billion a year for investors in the crypto industry”: the report reads. Proof of Stake is not only an investment opportunity, it is also a much better environmental solution compared to mining, analysts confirm.
Updating Ethereum 2.0 to staking would represent a highlight for the mechanism as it could prompt other industry cryptos that used PoW to migrate to PoS.
Less risk for more profit
The return obtained from staking can mitigate the opportunity cost of owning cryptocurrencies compared to other investments in other asset classes, such as the US dollar, US Treasuries, or government funds. money market, in which investments generate a positive nominal return.
In a bear market where Bitcoin, Ethereum and Dogecoin have already lost more than 50% compared to their ATH. Staking cryptos seems like a good investment option.
The Gemini exchange reported that investors can receive 7.4% return on crypto stakes on their platform. Recently, Coinbase announced that it would offer 4% to USDC Holders. According to data provided by stakingrewards.com, the performance of staking cryptocurrencies like BNB or Solana varies between 4-10%.
Staking yields to double with the launch of Ethereum 2.0
Analysts said in the report that interest earned from staking activity could double to $ 20 billion after the launch of Ethereum and even rise to $ 40 billion by 2025.
Currently, cryptos that use the PoS mechanism represent only 10.7% of the industry with a capitalization of $ 150 billion. Switching from Ethereum to staking will not just move one more crypto to the mechanism, it will create a PoS adoption effect in other cryptocurrency projects. Hence, the explanation for the increased return on staking activity cited by analysts in the report.
Coinbase may well benefit from this rise. Experts estimate that the Exchange’s staking revenue could rise from $ 10.4 million in 2020 to $ 200 million in 2022.
The challenges to be met
Staking, an integrated part of the crypto ecosystem, also sees its future depending on the performance of the cryptocurrency sector such as mining. Analysts have stressed the importance of a healthy industry to staking performance. If cryptos keep falling on the stock market, what use is staking?
The other problem posed in the report by the experts: the occurrence of inflation. The more investors participate in the staking, the less the rewards will be on the network as the marginal value of a new token becomes lower. One of our colleagues at Forbes.com believes that to prevent this from happening, cryptocurrencies need to put in place strict inflation control mechanisms like Solana.
Ethereum Price Prediction: ETH bears contemplate a drop to $2450
- ETH price is building up downside pressure while clinging to the 200-SMA support.
- RSI remains flat below the midline, keeping the sellers cheerful.
- A drop towards $2450 remains in the offing if the 200-SMA caves in.
Ethereum, the no.2 widely traded digital asset, remains under pressure for the second straight day, consolidating Friday’s steep losses.
ETH price snapped its two-day rebound from monthly lows of $2651, as it got sold-off into the latest Chinese crackdown.
The People’s Bank of China (PBOC) on Friday declared all cryptocurrency transactions as illegal, imposing a ban, which saw over $400 million worth of tokens liquidated within 24 hours. Ethereum lost as much as $420 at one point before recovering to $2930.61 at the close.
At the press time, ETH/USD is trading almost unchanged on the day around $2900, having bounced off from daily lows at $2800.
Ethereum price defending 200-SMA but for how long?
Ethereum’s 12-hour chart shows that the price is wavering in a narrow range, remaining in close vicinity of the daily troughs, as ETH price is not out of the woods yet.
Having witnessed good two-way volatility recently, ETH price maintains its range play, with the bearish 21-Simple Moving Average (SMA) at $3185 capping the upside.
Meanwhile, the 200-SMA at $2734 continues to offer support to ETH bulls. However, with the Relative Strength Index (RSI) still holding below the midline and bear cross in play, the path of least resistance appears to the downside.
Note that the 21-SMA breached the 100-SMA from above, confirming a bear cross on the said time frame on Thursday.
Once the 200-SMA gives way, a test of the horizontal trendline support at $2450 cannot be ruled out. The $2400 round number would be next on the sellers’ radars.
ETH/USD: 12-hour chart
On the upside, immediate resistance is placed at the 21-SMA, above which the horizontal 100-SMA at $3305 will be put to test.
ETH buyers will seek fresh entries above the latter, paving the way towards the downward-pointing 50-SMA at $3418.
ETH Locked in DeFi on Historic Highs: Details
Total number of Ethers utilized in various decentralized finance protocols spiked over 7.3 million
After a massive plunge in TVL, a decentralized finance ecosystem has recovered to observe some breathtaking metrics.
7,830,000 Ethers locked in DeFi
The net number of Ethers locked in various decentralized finance protocols spiked 12% in the past ten days. On Sept. 15, 2021, this indicator bottomed at a two-month low of about 6.95 million Ethers.
As displayed by mainstream decentralized finances segment tracker DeFi Pulse, the total quantity of Ethers in all indexed protocols nets 7.8 million Ethers.
Aave Finance (AAVE), Compound Finance (COMP), Instadapp, Uniswap (UNI), Curve Finance (CRV) are the most popular protocols in terms of TVL.
The five leading DeFis are responsible for almost 6.9 million Ethers, or 85% of net TVL, tracked by DeFi Pulse.
Yearn.Finance (YFI), Rari Capital (RGT) are on fire
In the last 24 hours, two DeFi protocols, Yearn.Finance (YFI) and Rari Capital (RGT), registered double-digit gains.
At the same time, the Ethereum 2.0 deposit contract targets almost the same numbers. As of Sept. 25, 2021, it has amassed 7.77 million Ethers.
Amid the current Ethereum (ETH) price dip, this massive amount of value is equal to $22.7 billion. To provide context, this sum can be compared to the market capitalization of Telenor, Credit Suisse, Suzuki and Warner Music Group.
Ethereum Network Activity is Stagnant while ETH Price Hovers Below $3k Level!
There’s a lot of fear and uncertainty in the crypto market right now. With news that China has officially declared all cryptocurrency transactions illegal, the Ethereum price, like the rest of the market, is under attack.
Ethereum Price Analysis:
The Major altcoin has lost 5.76% in the last 24 hours. Although it is now seeking to construct a firm support base at $3000. ETH Price had a tumultuous start, rising to an intraday high of $3,114 in the early morning before reversing course.
To reach the first big resistance level at $3,149, Ethereum would have to break past the $2,942 pivot. Support from the larger market, on the other hand, would be required for Ethereum to reclaim the $3,100 barrier. Unless there is a sustained crypto rally, the first significant resistance level and Friday’s high of $3,160.48 will likely act as a ceiling on the upside.
Network Activity is Stagnant
According to Santiment, most speculators are shifting away from Ethereum (ETH) in pursuit of better options with larger returns on investment.
Exchanges are seeing an influx of Ethereum, implying that people are selling their holdings in response to the recent marketwide crypto slump.
Santiment claims that network growth has been static for several months before the price of ETH fell.
This is attributed to growth in other Layer-1 initiatives like Avalanche (AVAX), Fantom (FTM), and Cosmos (ATOM), as well as decreased speculation in the non-fungible token (NFT) market.
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