Ethereum, the largest alternative digital currency in the crypto market, is a daily hot topic on crypto news sites.
According to Joseph Lubin, one of the founders of the Ethereum project, the market is currently witnessing a quantum leap.
Ethereum 2.0 Upgrade Raises Ethereum-related Expectations:
Recently, a lot of market participants have started accumulating their holdings of the two cryptocurrencies to earn a percentage of the reward over time.
According to a recent JPMorgan report, staking generates nearly $9 billion annually for the crypto industry.
The same report claimed that Ethereum’s shift to PoS would further fuel the trend, with the same amount expected to reach $40 billion in the industry by 2025.
What was stated in the report:
Not only is it waiting for the right opportunity to sell and profit, but in many cases cryptocurrencies pay a large nominal and real return.
According to StakingRewards , the combined value of Ethereum 2.0, at the time of writing, is $12 billion.
This value generates an annual return of 6.17%.
It should be noted that other cryptocurrencies such as SOL, BNB, ADA and DOT brought annual returns in the range of 4% to 12%.
According to a JPMorgan report, as crypto market volatility decreases, the ability to earn a positive real return will help the market become more mainstream.
At this point, it should be kept in mind that the upcoming maturity of the Ethereum network is likely to reduce the volatility of altcoins in the near future.
The report also emphasized:
The return earned through staking can mitigate the opportunity cost of owning cryptocurrencies versus other investments in other asset classes such as the dollar, US Treasuries or money market funds in which the investments generate some positive nominal returns.
Currently, staking is gradually being adopted by enthusiastic market participants who intend to earn passive income by holding cryptocurrencies.
If the trend extends, investors are likely to add more Ethereum to their portfolio after the 2.0 upgrade.