Generating income from cryptocurrencies is not just about trading. Staking is an increasingly interesting opportunity. And ETH 2.0 will boost this activity.
The fall in the price of crypto-assets obviously does not discourage institutions from investing in this market. On the contrary, the latter plan to expose themselves more widely. Several instruments allow this to be done.
Staking could therefore constitute an increasingly profitable investment over the next few years. This is the scenario studied by analysts at JPMorgan bank. And the upcoming launch of Ethereum 2.0 should only make staking more attractive to investors.
Staking, a $ 40 billion market in 2025
For JPMorgan, staking, driven by ETH 2.0, will be an increasingly attractive source of income in the years to come, both for institutions and individuals. This is already the case for the PoS blockchains Polkadot and Cardano.
The bank estimates that staking token holders generate $ 9 billion in returns each year. The migration of the largest public blockchain to Proof-Of-Stake could result in a doubling of these revenues.
Staking yields would thus jump to $ 20 billion by 2022, then to $ 40 billion by 2025. And compared to other investments, cash or Treasury bills in particular, staking is of definite interest, underlines JPMorgan.
“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 treasury bills, or currency funds. money market in which investments generate a certain positive nominal return. In fact, in today’s zero interest rate environment, we see returns as an incentive to invest. “
6 million Ether staking on ETH 2.0
But staking can also become a financial product offered by traditional banks. Their fintech rivals do not hesitate to offer crypto services with interest. Traditional products, such as life insurance, lag far behind in terms of returns.
A first bank, the Swiss Sygnum Bank, has just opened Ethereum staking to its customers. This is a world first. His promise? Up to 7% yield per year.
“With Ethereum fueling the exponential growth of decentralized financial applications, staking is an essential choice for long-term Ethereum investors who are also looking for attractive returns. “
Staking on Ethereum 2.0 is already successful. The amount of Ether thus invested in staking is experiencing explosive growth, even though this option has only existed since December 2020. To date, more than 6 million Ether has been invested in the blockchain deposit contract .