A study by Binance Research has reported that staking rewards for cryptocurrencies could double thanks to Ethereum. Currently, staking accounts for around $8 billion USD in crypto activity, while Ethereum’s new PoS blockchain could generate $16 billion in crypto activity.

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Why Ethereum?

According to Binance Research, “With Ethereum’s impending switch to Proof-of-Stake (PoS), staking is expected to take a most substantial portion of the market’s attention.” They continued, “As more infrastructure players support staking, the entire ecosystem will be able to mature.”

This report, at least according to Binance, is the cryptocurrency industry’s “first major study in staking.” Findings suggest that the crypto asset market could soon be looking at a major boost from staking, thanks to Ethereum’s plan to transfer from a Proof-of-Work to a Proof-of-Stake blockchain consensus algorithm. A proof-of-stake blockchain allows for improved scalability, and is overall much more suited to Ethereum.

What does Ethereum 2.0 entail?

One of the biggest problems that Ethereum has been facing is the issue of scalability. Since it’s built on a Proof-of-Work consensus algorithm, the network has very limited scalability. The implementation of a Proof-of-Stake consensus algorithm signals the launch of The Beacon Chain, which will consolidate Ethereum 2.0 Serenity. Ethereum customers and users from the current Ethereum blockchain can continue using the network and ETH token without a hitch.

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The implementation of the new blockchain solves the issue of scalability, allowing for dApp developers to continue building on the network. Ethereum 2.0 follows a series of updates beginning with Frontier in 2015, Homestead in 2016, Byzantium in 2017, Constantinople in February 2019, and ending with Istanbul in December 2019. This transition is entirely necessary for the long-term viability of the Ethereum network, and will vastly improve the way the ecosystem functions as a whole.

What will happen?

At the moment, there are around $15,4 billion in crypto funds available for staking, and $8 billion already staked. Once Ethereum switches over to Ethereum 2.0, these figures are expected to jump dramatically – potentially doubling. So much so, that Ethereum’s new PoS blockchain could generate $16 billion in crypto activity, and that’s good for all of us.

Ethereum’s Proof-of-Stake move has been on the cards for a long time, with more than $10 million in grant money already provided by ETH stakeholders (according to Binance’s report).

This is good news

The fact that Ethereum’s new PoS blockchain could generate $16 billion in crypto activity is good news for the whole industry. Once the blockchain switches over, we can expect to see a huge rise is staking activity overall – how it’ll all pan out still remains to be seen.

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