.jpmorgan says assuming the ethereum staking ratio rises to the 60% average of other PoS networks following the Shanghai upgrade, the validator number could rise to 2.2 million and the staking yield fall to around 5%. By willcanny99.
, scheduled for mid-March, will raise the blockchain’s staking ratio in the medium term, JPMorgan said in a research report Wednesday.proof-of-stake“Assuming the staking ratio converges over time to the 60% average of other major PoS networks, the validator number could increase from 0.5 million to 2.2 million and the yield would fall from 7.4% current to around 5%,” analysts led by Nikolaos Panigirtzoglou wrote.
A large portion of the future increase in staking will likely move to liquid staking protocols such as, the bank said. These protocols “enable liquidity for staked assets, which would otherwise be locked in the staking contracts, by providing an equal amount of derivative token in exchange for staked ether which can be traded.”
JPMorgan notes that liquid staking protocol derivative tokens have normally traded at prices below their underlying asset, but as the Shanghai upgrade nears they are converging to parity with ether . It could be argued that the utility of these liquid staking protocols would be reduced as the upgrade date approaches, the note said. The counterargument is that the utility of these protocols is not limited to only providing liquidity, but also acting as an intermediary for retail investors who would otherwise face a barrier of 32 ETH for staking, the note said. players, prompting concerns about network centralization, the note added.
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