Morgan analysts have suggested that coinbase could benefit from the upcoming shanghai fork of ethereum’s network. this fork could change the way ethereum holders stake their ether, allowing coinbase to capitalize on the trend. during its third fiscal quarter of last year, the exchange reported that 11% of its revenue was derived from staking. coinbase offers staking for multiple cryptocurrencies, including ethereum, cardano, solana, cosmos, algorand, and tezos.
Shanghai fork of ethereum’s network was first proposed in january of this year. jp morgan estimates that coinbase could earn between $225 million and $545 million in revenue per year if 95% of retail investors opt-in to the staking service. over $26 billion have been pledged to the ethereum network through its staking program, and ethereum’s energy use and carbon footprint fell by over 99.99% after the successful transition to a proof-of-stake system in september of last year.
Morgan analysts believe that coinbase could benefit from the shanghai fork of ethereum’s network because it could change the way ethereum holders stake their ether. previously, staking ethereum required holders to lock up their ether indefinitely, which acted as a disincentive. the shanghai fork could change this, and coinbase’s ethereum holders may be automatically enrolled in the coin’s staking program. jp morgan analysts have suggested that few ethereum investors would opt out of the network’s staking program. coinbase did not respond to requests for comment.