Ethereum Staking Business Can Grow Bigger

On the 24th of January 2023, Anthony Sassano, founder of the Daily Gwei, posted on Twitter that there is room for growth in the Ethereum industry.

https://twitter.com/sassal0x/status/1617719538371678214

He stated that even though Ethereum staking is a big industry, it has the potential to get so much bigger than anyone can imagine.

Sassano believes that utilizing tools like solo staking, centralized/decentralized LSDs, institutional stakers, re-staking, and LSDs as DeFi collateral & more has the capacity to skyrocket Ethereum’s staking into becoming a trillion-dollar industry.

Added to that is Ethereum’s security protocol. With NFT and metaverse projects building majorly on the Ethereum and Polygon blockchain, users speculate that Ethereum would naturally become the security mechanism for the digital world.

One of the world’s biggest investment banks, JP Morgan, which used to be against the crypto industry, started to set its eyes on Ethereum staking in July 2021 and referred to it as a ‘fast-growing revenue opportunity.’

According to analysts at JP Morgan, records show that while crypto fans are holding staked ETH, eagerly awaiting the network’s next update, the centralized crypto exchange, Coinbase has a lot to look forward to.

For Ethereum stakers, the Shanghai update is a well-awaited change to Ethereum’s proof of stake consensus mechanism, which would affect staking rewards and withdrawals. JP Morgan is of the opinion that the Ethereum network upgrade may cause a surge in Coinbase’s revenue from staking alone. 

The investment banking giant, in an estimate, stated that 95% of retail investors on Coinbase could possibly participate in staking Ethereum after the Shanghai Fork upgrade, which has the capacity to yield the exchange between $225 million and $545 million in revenue per year.

JP Morgan estimates that the exchange already earns around $50 million annually through Ethereum staking.

Staking has also become an area of growth for Coinbase as around 11% of the exchange’s revenue in its third fiscal quarter of last year came from staking, compared to 6.2% during the same period a year prior. 

Many agree with JP Morgan in the belief that staking will be a huge revenue source worth around 40 billion dollars in the coming years. ETH just might be the biggest piece of the cake, but it has a lot of catching up to do. 

Crypto enthusiasts are encouraging people to pick up their forks and grab a piece of ETH and hodl, before it all becomes massive.