Global investment bank JPMorgan released a report on the future outlook for crypto markets, including Ethereum upgrades, decentralized finance (challenge), and non-fungible tokens (NFT). The bank considers that “cryptocurrency markets are increasingly relevant to financial services,” described its analyst.
JPMorgan Presents Future Outlook for Crypto Markets
JPMorgan analyst Kenneth Worthington released a 2022 outlook report for the crypto markets on Friday. The analyst wrote:
Crypto apps are just getting started. Web3.0, greater use of NFT tokenization is in the sights for 2022.
JPMorgan considers that “tokenization and fractionation are particularly promising, as transaction speeds in crypto become more competitive with trad-fi networks,” the analyst continued.
The report adds:
Challenge has been 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 up of Layer 1 and the introduction and growth of Layer 2. He added that the introduction of fusion and Ethereum Layer 2.0 will speed up transactions and could significantly reduce power consumption.
The use cases of the crypto markets will continue to grow and new projects and tokens with more and different use cases will surface.
Additionally, analysts at JPMorgan noted that with these projects tied to tokens and Coinbase being a leading exchange for buying and selling tokens, “we view Coinbase as the primary direct beneficiary of the growth of the crypto market.” .
Worthington further stated that if 2021 was the year of non-fungible tokens, then 2022 could be the year of the “blockchain bridge (resulting in greater interoperability of different chains) or the year of financial tokenization.” The JPMorgan analyst said:
As such, we see cryptocurrency markets as increasingly relevant to financial services.
Another report from JPMorgan, released last week, indicates that Ethereum may lose its dominance by challenge due to scaling issues. Nonetheless, the World Investment Bank doubled its bitcoin price forecast to $ 146,000 in November of last year.
Meanwhile, JPMorgan CEO Jamie Dimon is still skeptical of the cryptocurrency. He has repeatedly warned against investing in cryptocurrencies, especially bitcoin, saying they have no intrinsic value.
Do you agree with the JPMorgan analyst? Let us know in the comments section below.
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