Coinbase Will Be A ‘Meaningful’ Beneficiary Of The Ethereum Mainnet Merge, JP Morgan

The Ethereum mainnet merge is an event not only anticipated by the Ethereum community but by the entire crypto industry. And according to Wall Street firm JP Morgan, Coinbase could benefit greatly from the upcoming merge.

Coinbase to Benefit from the Ethereum Merge

JPMorgan analyst Kenneth Worthington has said in a Wednesday note to investors that some exchanges could benefit from the upcoming Ethereum merge. He notes that Coinbase will be a “meaningful” beneficiary of the merge. 

According to Worthington, Coinbase has already taken significant steps “to maximize the value of ETH staking for its clients.” He adds that these steps could lead to increased revenue generation for Coinbase.

Coinbase has been made to endure a poor-performance year as the crypto market collapsed. The exchange recently posted $1.1 billion in net losses for the second quarter, as trading volume on the exchange fell by 29%. 

According to the JPMorgan estimate, the merge event could help Coinbase generate an incremental annual staking revenue of up to $650 million, with the ETH trading at $2,000 and a 5% yield. 

Ethereum Is ready for the Merge

Tim Beiko, the popular Ethereum core developer, has confirmed that Ethereum has completed all preparations for the Ethereum Merge as per the Readiness Checklist. 

On the Flipside

  • Coinbase CEO Brian Armstrong has said that the exchange will shut down its Ethereum staking option if threatened by regulators

Why You Should Care

With the merge in sight, analysts have predicted that the event could have the same effect a Bitcoin halving does on the price of BTC and the broader crypto market.

Read about Coinbase’s plan for the merge in:
Coinbase to Pause Ethereum (ETH) Deposits & Withdrawals During the Merge

The SEC has opened a probe into Coinbase’s staking. Find out more below:
The SEC Opens Probe into Coinbase’s Crypto Yield and Staking Products

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed to be financial legal or tax advice. Trading Forex, cryptocurrencies, and CFDs poses a considerable risk of loss

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Author

Milko is a DailyCoin reporter, mainly focused on Ethereum (ETH), Cardano (ADA), and their founders (Vitalik Buterin and Charles Hoskinson). Milko is an avid follower of crypto and blockchain technology and has written thousands of articles on the subjects. He finds joy in transforming complex issues into written content that anyone can understand. Milko has used and analyzed numerous exchanges, such as Coinbase, FTX, and Binance. He also closely follows all of the latest news around the largest decentralized exchanges (DEXs).