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JPMorgan claims a bigger revenue opportunity for Coinbase with Ethereum Staking

JPMorgan’s prominent investment bank believes that Coinbase will benefit from the Merge. Kenneth Worthington, an analyst at JPMorgan, stated that Coinbase’s San Francisco-based crypto exchange had taken concrete steps to increase the value of ETH staking to its clients in a Wednesday note.

This is expected to lead to higher revenue generation. Worthington claimed ,

” We see the staking income opportunity as greater than the income opportunity. Institutional staking customers will be able to contribute meaningfully to Eth Staking Revenue, but less for Institutional customers. The majority of the economics remain with retail ,”


High Hopes For Coinbase

Coinbase failed to sustain momentum in the midst of market volatility last year. As per its second-quarter earnings, the exchange registered a loss of $1.1 billion on revenue of $803 million. Both figures were below analyst expectations. Its revenue declined by almost 64% as investors exited the crypto market after last year’s dramatic run.

But, the Merge, scheduled for mid September, could prove to be significant for the exchange. Currently, the company holds a 15% market share of Ethereum assets. The New York-based investment bank claims that this will give Coinbase an advantage in this market. Coinbase’s new institutional-focused staking product, and its CEO, Brian Armstrong, said he expects this will benefit its business model.

In short, Coinbase’s Ethereum holdings as well as its staking service to institutions are expected boost its financials.

As per Worthington’s estimates, the exchange can potentially generate incremental annual staking revenue from the Ethereum Merge of $650 million with Ether’s price at $2,000 and a 5% ETH yield. “We see an incremental annual income of $80-$100mn of staking income,” Worthington added.

“We estimate Coinbase incremental annual staking revenue from the Ethereum merge of $650mn based on $2,000Eth and a 5% Eth yield. We see an incremental annual income of $80-$100mn of staking income.”

Institutional Staking: A “Phenomenon”

Coinbase’s chief financial officer Alesia Haas recently vouched that the Institutional staking of cryptocurrencies, including the post-Merge Ethereum, could potentially become a “phenomenon” in the future. However, Alesia Haas, Coinbase’s chief financial officer, stated that it was still early days for their new cryptocurrencies staking service.

Any “real material impact” of Ethereum can only be seen after the liquid staking option has been created for post-Merge Ethereum.


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Arthur Hayes Says Cardano Is A ‘Shitcoin’ – Here’s Why

Cardano (ADA) is a “shitcoin” without purpose that has no distinct advantage over competitors, according to BitMEX co-founder Arthur Hayes.

“Who gives a fuck? Zero?” said Hayes when asked “What about Cardano?” in an interview with Coin Bureau published on Sunday.

Cardano Is A Shitcoin, Says Hayes

Continuing to describe the cryptocurrency – a top ten digital asset by market cap – Hayes did not mince words: “The first wannabe Ethereum, and probably the first one to go to be irrelevant,” he said.

Typically, the popular crypto essayist and trader is well known as one of the loudest long-term Bitcoin (BTC) and Ethereum (ETH) bulls, and often expresses interest in small-cap cryptos for short-term trading.

During the same interview, Hayes even expressed interest in the memecoin “dogwifhat” calling it the “best dog money of this bull cycle.

“I love Rare Pepe’s… I think we’re going to see a resurgence of NFT trading volumes,” he added.

The writer’s unique callout of Cardano ruffled some feathers online – especially with the network’s founder, Charles Hoskinson. On Tuesday, Hoskinson asked Hayes why he was “throwing shade” at Cardano.

“Cause your coin is a piece of shit man,” Hayes replied. “Just buy some ETH and chill.”

What Makes Cardano Unique?

Much like Ethereum, Cardano is a smart contract platform for developing decentralized applications. It also popularized as one of the first well-developed proof-of-stake cryptocurrencies, which use crypto rather than energy to secure its network.

However, many popular blockchains today now use the same mechanism, with Ethereum undergoing a massive upgrade in 2022 to adopt proof of stake. In terms of both market size and DeFi TVL, Cardano is still outsized by competitors like Ethereum, Solana, and Binance Smart Chain (BSC).

On Tuesday, Hayes published a list of the world’s most popular Dapps, and asked which of them had originated or grown most popular on the Cardano blockchain.

“From my very limited knowledge, it looks like none of them do,” he said. “That’s why ADA is dog shit.”

On Bitcoin, however, Hayes remains a bull, expecting strong money printing from the Federal Reserve to drive the asset’s price up soon.

“When printing money happens and you debase the value of time and human labor, we rejoice and say great, fuck you, we’re gonna take Bitcoin to a million,” he told Coin Bureau.

Late last year, Hayes predicted that Bitcoin would reach between $750,000 and $1 million by the end of 2026.


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Crypto Markets Experience Minor Setback as Major Coins Dip, While Select Tokens Buck the Trend

On Wednesday, the crypto market experienced a modest downturn, with a 1% decrease in its overall value across the board, as bitcoin and ethereum saw declines of 0.51% and 0.45%, respectively. Bitcoin momentarily reached the $53,000 mark the day prior, while ether soared past the $3,000 threshold on Tuesday…
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Ethereum Technical Analysis: ETH Highlights Resilience Across Several Timeframes

Ethereum started Monday with its price hitting $2,934 per unit, marking a week filled with a strong 14.9% increase. Over the preceding fortnight, the second-leading crypto asset by market cap witnessed a substantial 25.9% upswing. Kicking off this week, ether’s trading volume over the past 24 hours has hovered around $24.74 billion…
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