Global investment bank JPMorgan has published a report on the future outlook of crypto markets, including Ethereum’s upgrades, decentralized finance (defi), and non-fungible tokens (NFTs). The bank sees “the cryptocurrency markets as increasingly relevant to financial services,” its analyst described.
JPMorgan Outlines the Future Outlook For Crypto Markets
Kenneth Worthington from JPMorgan published his report Friday on the crypto market outlook in 2022. He wrote:
Only recently have crypto applications begun. For 2022, Web3.0 and greater NFTs tokenization use are on the horizon.
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.
This report also includes:
Although Defi failed in 2021 and 2022, he still holds strong potential for 2022.
Analyst explained that crypto technology development will continue. This is due to Layer-1’s scaling and Layer-2’s growth. He added that Ethereum’s Merge and Layer 2.0 introduction will speed up transactions and could significantly cut energy consumption.
There will always be more use cases for cryptocurrency markets. New projects and tokens will emerge with new use cases.
Furthermore, the JPMorgan analysts noted that with these projects attached to tokens and Coinbase being a leading exchange to buy and sell tokens, “we see Coinbase as a leading direct beneficiary of crypto market growth.”
Worthington additionally said that if 2021 was the year of non-fungible tokens, then 2022 may be the year of the “blockchain bridge (driving greater interoperability of various chains) or the year of financial tokenization.” The JPMorgan analyst opined:
We see cryptocurrency markets becoming more relevant for financial services.
JPMorgan released a new report last week stating that Ethereum might lose its defi dominance because of scaling issues. The global investment bank increased its prediction for bitcoin’s price of $146K to $146K last November.
Jamie Dimon, CEO of JPMorgan is skeptical about cryptocurrency. He warned against investing in cryptocurrency, especially bitcoin, saying that they do not have intrinsic value.
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