According to a report by JP Morgan, staking pay-outs throughout the crypto industry could go up to $40 billion by 2025.
JP Morgan estimates that staking generates annual revenue of $9 billion in the industry. But, due to the long-awaited launch of ETH 2.0, this could change, JP Morgan says. JP Morgan predicts that staking pay-outs will rise to $20 billion shortly after ETH 2.0’s launch. Finally, in 2025, staking pay-outs could balloon to $40 billion.
“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 (…) 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.”JP Morgan report
JP Morgan and the crypto industry – this is a story for itself! After years of bashing bitcoin, JP Morgan began to give clients bitcoin exposure in March 2021. And in 2019 already, the bank launched its own stablecoin: JPMCoin.
And now it seems so that JP Morgan became bullish on the staking industry.