JPMorgan Shares Predictions on Crypto Markets, Ethereum’s Upgrades, Defi, NFTs –

Global investment bank JPMorgan has published a report on the future prospects of crypto markets, including Ethereum upgrades, decentralized finance (defi) and non-fungible tokens (NFTs). The bank sees “the cryptocurrency markets as increasingly relevant to financial services,” according to its analyst.

JPMorgan outlines future prospects for crypto markets

JPMorgan analyst Kenneth Worthington released a report on the 2022 outlook for crypto markets on Friday. The analyst wrote:

The applications of crypto have just begun. Web3.0 and greater use of NFTs tokenization are on the horizon for 2022.

JPMorgan sees “tokenization and fractionalization as particularly promising as cryptocurrency transaction speeds become more competitive with traditional networks,” the analyst continued.

The report adds:

Defi was a bit of a flop in 2021, but still has great potential in 2022 and beyond.

The analyst explained that the development of crypto technology will continue, driven by the scaling of Layer-1 and the adoption and growth of Layer-2. He added that Ethereum's adoption of Merge and Layer 2.0 could speed up transactions and significantly reduce energy consumption.

Worthington in detail:

The use cases for crypto markets will continue to increase and new projects and tokens with more and different use cases will emerge.

Additionally, JPMorgan analysts noted that with these projects related to tokens and Coinbase as a leading exchange for buying and selling tokens, “we see Coinbase as a leading 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 the “blockchain bridge (promoting greater interoperability of different chains) or the year of financial tokenization.” The JPMorgan analyst said:

Therefore, we see cryptocurrency markets as increasingly relevant to financial services.

Another JPMorgan report released last week States that Ethereum could lose its Defi dominance due to scaling issues. Nonetheless, the global investment bank doubled its Bitcoin Price prediction from $146,000 in November last year.

Meanwhile, JPMorgan CEO Jamie Dimon is still skeptical about the cryptocurrency. He repeats warned about investing in cryptocurrencies, particularly Bitcoin, stating that they have no intrinsic value.

Do you agree with the JPMorgan analyst? Let us know in the comments section below.

Kevin Helms

Kevin, an Austrian economics student, found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects, and the interface between economics and cryptography.

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