Ethereum is adopting a proof-of-stake consensus and analysts are bullish about it. The migration would develop the network, making it more secure and far more scalable. Analysts from the JPMorgan Chase team have predicted that staking rewards across all crypto assets would amount to $40 billion by 2025.
According to the strategists, the adoption of the network would increase considerably after a POS migration. Current statistics indicate that $9 million is the annual revenue generated from staking. The method is attractive to retail investors and institutions and they are swiftly engaging with it.
With Ethereum joining the staking networks, there would be a significant swell in staking revenue up to $40 million by 2025 following the investment bank’s prediction. The migration would also minimize crypto energy FUD as there’d be no need for miners on the network. Ethereum miners using GPUs would have no more need for them unless they switch focus to other altcoins.
JPMorgan’s Analytics team mentioned that the volatility of digital assets would be reduced with staking. According to them, staking lowers the cost of holding cryptocurrencies in comparison with other digital assets.
When Will the Ethereum Migration Happen?
The migration from the current Ethereum proof-of-work protocol to proof-of-stake would happen after the deployment of Ethereum’s EIP-1559 update. The date for the upgrade is not yet clear but it is strongly speculated that it would occur either by the end of 2021 or the first weeks of 2022 after delays
Staking on Ethereum would come with a lot of benefits. One of the most striking benefits is further decentralization as anyone could validate the network. Furthermore, the scalability issues on the network might be bygone, and the integration of a solid security feature.
It is fair to add that the migration would not affect the network negatively and won’t hamper the existence of your digital assets already in possession.