Ethereum (ETH) Report from JP Morgan!

As known Ethereumeagerly awaited in merge The update took place in September 2022.

With this update ETH It had switched to the PoS system.

According to The Block, more than 1 year has passed since the ETH Merge update. JP Morgan analysts A report was prepared by.

The report prepared by JPMorgan analysts led by Nikolaos Panigirtzoglou said that staking in ETH increased after Merge, which made ETH more centralized.

“There has been an increase in Ethereum staking since the Merge and Shanghai upgrades. This increase in staking is making the Ethereum network more centralized.

As ETH became more centralized, there was a decrease in staking yield. “The total staking return has fallen from 7.3% before the Shanghai upgrade to approximately 5.5% now.”

“Lido Controls Most of the Staking Activity!”

Allows unlocking of staked ETHs Shanghai Referring to the upgrade, analysts said that ETH staking transactions increased after the Shanghai upgrade.

At this point, Ethereum accounts for the majority of staking activity. LidoAnalysts emphasize that it controls “Many in the crypto community have viewed Lido, a decentralized liquid staking platform, as a better alternative compared to centralized liquid staking platforms associated with centralized exchanges.” said.

“The top 5 liquid staking providers control over 50% of staking on the Ethereum network, with Lido in particular accounting for almost a third.

Although platforms such as Lido are decentralized liquid staking platforms, they involve a high degree of centralization risks.

At this point, it goes without saying that centralization from any protocol poses risks for the Ethereum network.”

Analysts point out that, in addition to centralization, some applications used in staking activities also pose risks, for example, liquidity tokens can be used more than once at the same time. DeFi showed its use as collateral in the protocol.

*This is not investment advice.