World 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 more and more related to monetary companies,” 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 functions from crypto have solely simply begun. Web3.0, larger use of NFTs tokenization are within the line-of-sight for 2022.
JPMorgan sees “the tokenization and fractionalization as holding notably giant promise as transactions speeds in crypto turn into extra aggressive 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 velocity up transactions and will considerably reduce power consumption.
The use instances for crypto markets will proceed to develop and new tasks and tokens with extra and completely different use instances will floor.
Moreover, the JPMorgan analysts famous that with these tasks connected to tokens and Coinbase being a number one alternate to purchase and promote tokens, “we see Coinbase as a number one direct beneficiary of crypto market progress.”
Worthington moreover stated that if 2021 was the 12 months of non-fungible tokens, then 2022 will be the 12 months of the “blockchain bridge (driving larger interoperability of varied chains) or the 12 months of monetary tokenization.” The JPMorgan analyst opined:
As such, we see the cryptocurrency markets as more and more related to monetary companies.
A unique JPMorgan report, printed final week, states that Ethereum could lose its defi dominance resulting from scaling points. Nonetheless, the worldwide funding financial institution doubled down on its bitcoin price prediction of $146K in November final 12 months.
In the meantime, JPMorgan CEO Jamie Dimon remains 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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