- Ethereum 2.0 will increase the industry of staking.
- Currently, the aggregate amount of coins involved in staking is $6.4 billion.
Etherum’s move to consensus algorithm Proof-Of-Stake (PoS) has the potential to double the value of assets involved in the staking industry, according to the recent paper, published by Binance Research.
The experts provide several examples of different staking models. Algorand project is considered to be an example of a pure proof-of-stake where “users’ influence on the production of a new block is proportional to their stake (denominated in ALGO).”
Also the researchers mention such projects as Stellar, Dash, EOS and NEO. However, Ethereum is poised to become the biggest player at thee PoS stage.
“Perhaps the largest elephant in the staking room is Ethereum, with its pending switch to Proof of Stake being long-coming,” the report goes.
“With Ethereum being the second-largest market cap coin and one of the longest-running blockchain products, it could drive many projects to follow and switch to Proof-of-Stake.”
Excluding Ethereum, the total capitalization of all PoS projects amounts to $11.2 billion, with $6.4 billion involved in staking. Once the second-largest digital asset joins the game, the aggregated capitalization of the projects with staking will increase to $25.8 billion.
“With Ethereum slated to switch to Proof-of-Stake in the not-too-distant future, the blockchain space may be forced to reckon with staking sooner, rather than later,” the team stated.
As we reported, Ethereum developers plan to deploy Istanbul update in the first quarter of 2019. It will pave the way to Ethereum 2.0.
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