While the crypto money markets are making a rapid entrance to 2023, the horizontal trend continues in February.
in the coming days EthereumOne of the important updates of Shanghai upgrade we will talk more.
There was also an assessment of Ethereum before the Shanghai upgrade from JP Morgan.
Analysts led by Nikolaos Panigirtzoglou think that the Shanghai upgrade, which is expected to take place in mid-March, will increase the staking rate on the Ethereum network in the medium term. The staking rate in ETH is currently around 14%.
Stating that the staking rates in other networks are almost four times that of ETH, analysts stated that there is enough room for this rate to increase. According to analysts, returns will decrease as the stake rate increases.
“Assuming that the average staking rate in other major POS networks approaches 60%, the number of validators in ETH could go from 0.5 million to 2.2 million and returns could drop from 7.4% to as low as 5%.”
JP Morgan analysts say this increase Lido He stated that such locked staking protocols may decrease their popularity.
Analysts stated that derivative tokens in staking protocols are normally traded below the prices of the underlying assets, and this gap will close as the Shanghai raise approaches.
The counter argument, which thinks that the interest in these protocols will not decrease, states that retail investors face the staking barrier of 32 ETH ($52,000) and that small investors who do not have that much ETH will continue to use protocols like Lido.
The report stated that major staking protocols are becoming influential players, which raises concerns about the centralization of the network.
According to Coinmarketcap data, Liquid Staking Derivative Tokens are as follows:
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