Global funding financial institution JPMorgan has printed a report on the longer term outlook of crypto markets, together with Ethereum’s upgrades, decentralized finance (defi), and non-fungible tokens (NFTs). The financial institution sees “the cryptocurrency markets as increasingly relevant to financial services,” its analyst described.
JPMorgan Outlines Future Outlook for Crypto Markets
JPMorgan analyst Kenneth Worthington printed a report on the 2022 outlook for crypto markets Friday. The analyst wrote:
The purposes from crypto have solely simply begun. Web3.0, higher use of NFTs tokenization are within the line-of-sight for 2022.
JPMorgan sees “the tokenization and fractionalization as holding particularly large promise as transactions speeds in crypto become more competitive with trad-fi networks,” the analyst continued.
The report provides:
Defi was a little bit of a flop in 2021, however nonetheless has robust potential in 2022 and past.
The analyst defined that the event of crypto expertise will proceed, pushed by the scaling of Layer-1 and the introduction and progress of Layer-2. He added that Ethereum’s Merge and Layer 2.0 introduction will pace up transactions and will considerably lower power consumption.
The use instances for crypto markets will proceed to develop and new initiatives and tokens with extra and totally different use instances will floor.
Furthermore, the JPMorgan analysts famous that with these initiatives connected to tokens and Coinbase being a number one trade to purchase and promote tokens, “we see Coinbase as a leading direct beneficiary of crypto market growth.”
Worthington moreover stated that if 2021 was the yr of non-fungible tokens, then 2022 could be the yr of the “blockchain bridge (driving greater interoperability of various chains) or the year of financial tokenization.” The JPMorgan analyst opined:
As such, we see the cryptocurrency markets as more and more related to monetary providers.
A special JPMorgan report, printed final week, states that Ethereum could lose its defi dominance because of scaling points. Nonetheless, the worldwide funding financial institution doubled down on its bitcoin value prediction of $146K in November final yr.
Meanwhile, JPMorgan CEO Jamie Dimon continues to be skeptical about cryptocurrency. He repeatedly warned about investing in cryptocurrencies, notably bitcoin, stating that they haven’t any intrinsic worth.
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