18.08.2022
by Rrick
Image: fortune.com
According to JPMorgan, cryptocurrency exchange Coinbase could benefit from Ethereum`s long-awaited merger.
Analyst Kenneth Worthington said in a note to investors on Wednesday that the San Francisco-based exchange's Ethereum holdings
and its staking service for institutions will help it financially.
However, the New York-based investment bank believes that Ethereum's transition to ETH 2. 0 will benefit the company.
"We see Coinbase as a significant beneficiary of the Ethereum Merge," JPMorgan said in a note
Ethereum currently employs the same proof-of-work consensus mechanism as Bitcoin.
However, Ethereum's transition to proof of stake will eliminate the need for miners.
According to JPMorgan's note, Coinbase can generate an additional $650 million
in annual staking revenue from Ethereum's "merge," with Ethereum trading at $2,000 and a 5% yield.