Global investment bank JPMorgan has printed a report on the
Global investment bank 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 bank sees “the cryptocurrency markets as more and more relevant to money 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 applications from crypto have hardly begun. Web3.0, greater use of NFTs tokenization are within the line-of-sight for 2022.”
JPMorgan sees “the tokenization and fractionalization as holding significantly massive promise as transaction speeds in crypto become a lot more competitive with trad-fi networks,” the analyst continued.
The report adds:
“Defi was a bit of a flop in 2021, however still has robust potential in 2022 and on the far side.”
The analyst explained that the event of crypto technology can continue, driven by the scaling of Layer-1 and therefore the introduction and growth of Layer-2. He added that Ethereum’s Merge and Layer 2.0 introduction can speed up transactions and will considerably cut energy consumption.
Worthington detailed:
The use cases for crypto markets can still grow and new comes and tokens with a lot of and completely different use cases can surface.
Furthermore, the JPMorgan analysts noted that with these comes connected to tokens and Coinbase being a number one exchange to shop for and sell tokens, “we see Coinbase as a number one direct beneficiary of crypto market growth.”
Worthington to boot aforesaid that if 2021 was the year of non-fungible tokens, then 2022 is also the year of the “blockchain bridge (driving bigger ability of varied chains) or the year of monetary tokenization.” The JPMorgan analyst opined:
As such, we have a tendency to see the cryptocurrency markets as more and more relevant to money services.
A different JPMorgan report, printed last week, states that Ethereum might lose its defi dominance because of scaling problems. notwithstanding, the worldwide investment bank doubled down on its bitcoin worth prediction of $146K in Nov last year.
Meanwhile, JPMorgan chief executive officer Jamie Dimon continues to be skeptical regarding cryptocurrency. He repeatedly warned regarding finance in cryptocurrencies, significantly bitcoin, stating that they need no intrinsic worth.