Bitcoin Continues To Tread Water As Ethereum Begins A Climb Back From Late-june Lows

Bitcoin (BITCOMP) continued to tread water in the $34-36,000 range last week as Ethereum (ETH-X) began a climb back from late-June lows. 

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Bitcoin began the week around $34,500 before reaching above $36,000 mid-week. A high of $35,842 late on 4 July capped a week of swings for the cryptoasset, which has now fallen back to trade around $34,200 this morning.

Ethereum likewise suffered volatility but with a clearer upward trajectory in the past seven days. It began the week trading in the $1,800 range, but still well below its recent peaks in May above $4,000. ETH is currently trading back above $2,200 marking a positive week for the cryptoasset. 

JP Morgan bullish on Ethereum upgrades catalyzing ‘$40bn’ staking industry

Last week JP Morgan (JPM) claimed that the impending upgrades to the Ethereum network could result in $40 billion of staking rewards by 2025. 

In a recently released report, it asserted that as blockchains running more energy efficient networks become more popular, and staking becomes more common, it will gain traction as a source of revenue for both retail and institutional investors.

The boom will largely be driven by the switch from proof-of-work to proof-of-stake, which is set to be implemented in the Ethereum 2.0 launch next year. Proof-of-work has been criticized in the past for its energy-demanding processes, which validates all the transactions on the network. However, proof-of-stake will deliver scalability and efficiency within the network, and allow investors to lock away their funds on the blockchain in return for financial rewards.

JP Morgan outlined that staking currently generates c.$9bn for the crypto industry each year. However, the upgrade to Ethereum 2.0 and the proof-of-stake will catalyze staking payouts to increase initially to $20bn following the launch, and reach $40bn by 2025. It also made the point that as the volatility of cryptoassets decline, earning positive returns will further help the market become more mainstream.

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Disclaimer: This article should not be taken as investment advice, personal recommendation, or an offer of, or solicitation to buy or sell, any financial instruments. This material has been ...

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