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Global investment bank JPMorgan has released a report on the future prospects of the crypto market, including the upgrade of Ethereum, decentralized finance (defi) and non-fungible tokens (NFT). Analysts at the bank said the bank believes that “the cryptocurrency market is increasingly relevant to financial services.”
JPMorgan outlines future outlook for crypto markets
JPMorgan analyst Kenneth Worthington released a report on the outlook for the crypto market in 2022 on Friday. Analysts wrote:
Applications from encryption are just getting started. Web 3.0, more use of NFT tokenization is the goal for 2022.
JPMorgan believes that “tokenization and segmentation hold particular promise as crypto transaction speeds become more competitive with trad-fi networks,” the analyst continued.
The report added:
Defi is a bit of a flop in 2021, but still has strong potential in 2022 and beyond.
The analyst explained that the development of cryptography will continue, driven by the expansion of Layer-1 and the introduction and growth of Layer-2. The introduction of Ethereum’s Merge and Layer 2.0 will speed up transactions and can significantly reduce energy consumption, he added.
Worthington details:
The use cases in the crypto market will continue to grow and new projects and tokens with more different use cases will surface.
Additionally, the JPMorgan analyst noted that since these projects are token-related, and Coinbase is the leading exchange for buying and selling tokens, “we see Coinbase as a major direct beneficiary of crypto market growth.”
Worthington also said that if 2021 is the year of non-fungible tokens, then 2022 could be “the year of blockchain bridges (driving greater interoperability of various chains) or financial tokenization.” According to JPMorgan analysts:
Therefore, we believe that the cryptocurrency market is increasingly relevant to financial services.
Another JPMorgan report released last week, state Ethereum may lose its defined dominance due to scaling issues.Still, the global investment bank doubles its bitcoin investments price forecast $146,000 last November.
Meanwhile, JPMorgan CEO Jamie Dimon remains skeptical of cryptocurrencies.he repeated warn Regarding investing in cryptocurrencies, especially Bitcoin, it is claimed that they have no intrinsic value.
Do you agree with JPMorgan analysts? Let us know in the comments section below.
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