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JPMorgan: New Ethereum Network Upgrade May Boost Coinbase Revenue

JPMorgan experts believe that Coinbase's revenues will noticeably increase after the upgrade of the Ethereum Shanghai network, as the exchange will include ETH holders in the staking program.

JPMorgan Investment Bank Analysts Say Shanghai's Next Ethereum Network Upgrade May Boost Cryptocurrency Exchange Coinbase's Revenue. An update scheduled for March will give users access to funds previously locked on Beacon Chain. This will allow contributors to participate in transaction verification and receive rewards.

Ether staking required holders to lock up their ETH coins indefinitely, which was considered a big hurdle for stakers.. The update will allow you to withdraw blocked funds from Beacon Chain for the first time since December 2020.

Analysts estimate that 95% of Coinbase retail investors will be able to join Ethereum staking after the upgrade, which will bring the crypto exchange from $225 to $545 million. Given the current market conditions, as well as layoffs in the company and the exit from the Japanese market, this money will be a good help for the further work of the exchange.

Currently, 25% of the assets held on Coinbase are ether, which, according to experts, will also affect the exchange in favor after the update.. However, the analysts emphasized that their claims are based on previous decisions by Coinbase and have not yet been confirmed by company representatives.

Recall that last week, Moody's rating agency again downgraded Coinbase's long-term credit rating and the rating of the company's unsecured bonds.