Coinbase Will Be A ‘Meaningful’ Beneficiary Of The Ethereum Mainnet Merge, JP Morgan
2022.08.18 15:49
Coinbase Will Be A ‘Meaningful’ Beneficiary Of The Ethereum Mainnet Merge, JP Morgan
The Ethereum mainnet merge is an event not only anticipated by the Ethereum community but by the entire crypto industry. And according to Wall Street firm JP Morgan, Coinbase (NASDAQ:COIN) could benefit greatly from the upcoming merge.
Coinbase to Benefit from the Ethereum Merge
JPMorgan (NYSE:JPM) analyst Kenneth Worthington has said in a Wednesday note to investors that some exchanges could benefit from the upcoming Ethereum merge. He notes that Coinbase will be a “meaningful” beneficiary of the merge.
According to Worthington, Coinbase has already taken significant steps “to maximize the value of ETH staking for its clients.” He adds that these steps could lead to increased revenue generation for Coinbase.
Coinbase has been made to endure a poor-performance year as the crypto market collapsed. The exchange recently posted $1.1 billion in net losses for the second quarter, as trading volume on the exchange fell by 29%.
According to the JPMorgan estimate, the merge event could help Coinbase generate an incremental annual staking revenue of up to $650 million, with the ETH trading at $2,000 and a 5% yield.
Ethereum Is ready for the Merge
Tim Beiko, the popular Ethereum core developer, has confirmed that Ethereum has completed all preparations for the Ethereum Merge as per the Readiness Checklist.
On the Flipside
- Coinbase CEO Brian Armstrong has said that the exchange will shut down its Ethereum staking option if threatened by regulators
Why You Should Care
With the merge in sight, analysts have predicted that the event could have the same effect a Bitcoin halving does on the price of BTC and the broader crypto market.
Read about Coinbase’s plan for the merge in:
Coinbase to Pause Ethereum (ETH) Deposits & Withdrawals During the Merge
The SEC has opened a probe into Coinbase’s staking. Find out more below:
The SEC Opens Probe into Coinbase’s Crypto Yield and Staking Products
Continue reading on DailyCoin
