Global investment bank JPMorgan has released a report on the future outlook for crypto markets, including upgrades from Ethereum, decentralized funding (defi) and non-fungible tokens (NFTs). The bank sees “the cryptocurrency markets as increasingly relevant for 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 the crypto markets on Friday. The analyst wrote:
The applications of crypto have only just begun. Web3.0 and greater use of NFTs tokenization are in sight for 2022.
JPMorgan sees “tokenization and fractionalization as showing great promise as transaction speeds in cryptocurrencies become more competitive with traditional networks,” the analyst continued.
The report adds:
Defi was a small flop in 2021, but still has great potential in 2022 and beyond.
The analyst stated that crypto technology is advancing, driven by the scaling of Layer-1 and the adoption and growth of Layer-2. He added that Ethereum’s rollout 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 grow and new projects and tokens with more and different use cases will emerge.
In addition, JPMorgan analysts noted that with these token-related projects 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 if 2021 is the year of non-fungible tokens, then 2022 could be the year of “the blockchain bridge (which encourages greater interoperability between different chains) or the year of financial tokenization.” The JPMorgan analyst said:
Therefore, we see the cryptocurrency markets as increasingly relevant for financial services.
Another JPMorgan report released last week said Ethereum could lose its defi-dominance due to scaling issues. That said, the global investment bank doubled its Bitcoin price forecast from $ 146,000 last November.
Meanwhile, JPMorgan CEO Jamie Dimon is still skeptical about the cryptocurrency. He repeatedly warned against investing in cryptocurrencies, especially Bitcoin, stating that they have no intrinsic value.
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Bitcoin outlook, coinbase, crypto market outlook, crypto markets, crypto predictions, decentralized finance, DeFi, JP Morgan, jpmorgan, JPMorgan crypto predictions, Kenneth Worthington, nft, non-fungible tokens, tokenization, web 3.0
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Kevin, a student of Austrian economics, 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 economy and cryptography.
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