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Staking providers could expand institutional presence in the crypto space: Report

Last week’s Merge event lowered Ethereum’s carbon footprint by 99%. Long-term Ether (ETH) staking investors might earn 4%-8%, while J.P. Morgan analysts expect PoS blockchain staking returns to triple to $40 billion by 2025.

Staking crypto assets produces transaction fees from network users.

Staking involves locking funds in a smart contract for a period of time. This may be the biggest obstacle to PoS blockchain adoption, especially among institutional investors.

Source: Ethereum Research

Coinbase CEO Alesia Haas said institutional staking of crypto assets may be a “phenomenon” in the future as the market overcomes its liquidity lock-up.

Proof of Stake blockchains account for more than half of the total crypto market value, but there hasn’t been a viable way for institutional token holders to engage in liquid staking, according to Matt Leisinger, CEO of Alluvial.

Prior to the Merge, the Swiss digital asset banking platform SEBA Bank established an Ethereum staking service for institutions interested in earning returns by staking on the Ethereum network.

According to the authors of a Bitwise analysis, investors are not only plunging headfirst into staking, but they are also exploiting liquid staking services and the composability of DeFi to multiply the APY and usability of assets they are currently staking.

The possibility of staking may also bring more centralisation difficulties to the community.

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