The Merge is making a lot of noise in the crypto community. Until Ethereum (ETH)’s move from Proof-of-Work (PoW) to Proof-of-Stake (PoS) takes effect, analysts are talking about the consequences it could have in the crypto space. In this regard, a professional recently said that the Merger could positively impact Coinbase.
Coinbase will increase revenue with the Merge, says JPMorgan
According a tweet from Watcher.Guru on August 17, “ JPMorgan Says Ethereum’s Move to Proof-of-Stake Will Lead Coinbase to Greater Revenue Opportunity “. The tweet refers to the recent statement by an analyst at JPMorgan investment bank called Kennet Worthington. Indeed, in a note, Kennet claimed that institutional clients like Coinbase will benefit from the Merge. In fact, they will be able to have income thanks to the staking ether (ETH) that powers the Fusion.
According to Worthington, Coinbase has a 15% market share of ETH assets. And a large part of this market share is directed towards institutions. The majority of institutional clients on the Coinbase exchange happen to hold bitcoin (BTC) and ether (ETH). Against this backdrop, Coinbase can make millions, with ETH at $2,000 and a 5% staking yield. The exchange could realize an annual turnover of more than 650 million dollars in staking after the Merge.
You should know that ether (ETH) has recorded a loss of almost 3% in the last 24 hours. But, the cryptocurrency has gained over 21% in the last 30 days. And its value has hovered around $2,000 in recent days. According to analysts, the price of ether (ETH) will cross the $2,000 mark after the Merge.
According to JPMorgan analyst Kennet Worthington, Coinbase could make more than $650 million in revenue per year after the Merge. There are, however, two conditions: ETH must be able to sustain itself at $2,000 with a return ofstakingby 5%. Note that currently the price of Ether (ETH) is hovering around $1,800.
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