JPMorgan Chase shares its predictions on the crypto market, Ethereum upgrade, Defi, and NFT

The global investment bank JP Morgan Chase released a report on the long-term prospects of the crypto market, as well as the upgrade of Ethereum, decentralized finance (defi) and non-fungible tokens (NFT). The bank believes that “the cryptocurrency market is becoming more and more related to currency services,” its analysts describe.

JPMorgan Chase outlines the future outlook of the crypto market

JPMorgan Chase analyst Kenneth Worthington (Kenneth Worthington) published a report on the outlook for the crypto market in 2022 on Friday. The analyst wrote:

“The application from encryption has not yet started. Web3.0, more use of NFT tokenization is within sight in 2022.”

JPMorgan Chase believes that “as the speed of encrypted transactions becomes more competitive with the trad-fi network, tokenization and segmentation have great prospects,” the analyst continued.

The report added:

“Defi failed a bit in 2021, but it still has great potential in 2022 and beyond.”

The analyst explained that, driven by the expansion of layer 1 and the introduction and growth of layer 2, the events of encryption technology can continue. He added that the introduction of Ethereum’s Merge and Layer 2.0 can speed up transactions and greatly reduce energy consumption.

Worthington introduced in detail:

The use cases for the crypto market can still grow, and there may be many completely different use cases for the emerging tokens.

In addition, JPMorgan Chase analysts pointed out that because these are related to tokens, and Coinbase is the largest exchange to buy and sell tokens, “We believe that Coinbase is the number one direct beneficiary of the growth of the crypto market.”

Worthington stated that if 2021 is an irreplaceable token year, then 2022 will also be a “blockchain bridge (promoting greater capacity for various chains) or currency tokenization year”. JPMorgan Chase analysts believe:

Therefore, we tend to think that the cryptocurrency market is increasingly related to currency services.

Another JPMorgan Chase report issued last week pointed out that Ethereum may lose its absolute advantage due to scaling issues. Despite this, the global investment bank doubled its Bitcoin value forecast in November last year to $146,000.

At the same time, JPMorgan Chase CEO Jamie Dimon continues to be skeptical of cryptocurrencies. He has repeatedly warned cryptocurrency finance, especially Bitcoin, and pointed out that they do not require intrinsic value.

Post JPMorgan Chase shares its predictions on the crypto market, Ethereum upgrade, Defi, and NFT First appeared in Bitcoin wire.

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