The global investment bank JPMorgan has published a report on the future outlook for crypto markets, including Ethereum’s upgrades, decentralized finance, and non-fungible tokens. An analyst for the bank believed that cryptocurrencies would continue to play an increasingly important role in the financial sector.
It is headquartered in New York City and incorporated in Delaware. JPMorgan Chase is an American multinational investment bank and financial services holding company.
Kenneth Worthington, an analyst at JPMorgan, recently published a report on cryptocurrency markets for 2022.
As the analyst pointed out, the applications from crypto have just begun. Web3.0 and greater use of NFTs tokenization should be in the pipeline for 2022 and beyond.
In the analyst’s view, “tokenization and fractionalization hold particular promise as transactions speeds in crypto become more competitive with traditional exchanges”, he added.
The report said, “While Defi has been a bit of a flop in 2021, it still has solid potential for 2022 and beyond”.
Analysts are predicting continued progress since Layer-1 would scale and Layer-2 would introduce and expand. He added that Ethereum’s Merge and Layer 2.0 introduction would fast-track transactions and reduce energy consumption by as much as 60 per cent by 2023.
According to Worthington, the use cases for crypto markets would continue to grow, and more projects and tokens will emerge with more and different use cases.
Moreover, the JPMorgan analysts noted that Coinbase’s connection to tokens, as well as its status as a leading exchange for buying and selling tokens, makes Coinbase a direct beneficiary of the crypto market’s growth.
According to Worthington, if 2021 was the year of non-fungible tokens, then 2022 may be the year of the “blockchain bridge (which will bring greater interoperability between various chains) or financial tokenization.”
JPMorgan analyst: We see cryptocurrencies as increasingly relevant to financial services.
The global investment bank has done nothing but doubles its bitcoin price prediction of $146K last November. A recent JPMorgan report suggests Ethereum may lose its dominance due to scaling issues.
Meanwhile, JPMorgan CEO Jamie Dimon has remained sceptical of cryptocurrencies. He has repeatedly warned investors against investing in cryptocurrencies, particularly bitcoin, stating that they have no intrinsic value.
