Kenneth Worthington, a JPMorgan analyst, published Friday’s report on the outlook for crypto markets in 2022. The analyst wrote:
The first applications of crypto are just beginning. Web3.0 and greater NFT tokenization use are in the plans for 2022.
JPMorgan believes that tokenization and fractionalization hold a lot of promise, as crypto transactions speed increases with trad fi networks.
The report also includes:
Although Defi was somewhat of a failure in 2021, he still has great potential for 2022 and beyond.
According to the analyst, the growth and scaling of Layer-1 will drive the development of crypto technology. Layer-2 will also continue to grow. He explained that Ethereum’s Merge feature and Layer 2.0 will accelerate transactions and reduce energy consumption.
Crypto markets will continue to expand and new tokens and projects with different uses will emerge.
JPMorgan analysts also noted that Coinbase is a leading exchange for buying and selling tokens, and these projects are attached to tokens.
Worthington also stated that 2021 was the Year of Non-fungible Tokens. However, 2022 could be the Year of the Blockchain Bridge (driving greater interoperability among various chains) or Financial tokenization. JPMorgan analyst said:
We see cryptocurrency markets as being increasingly relevant for financial services.
Last week, a different JPMorgan report stated that Ethereum could lose its dominance in the defi space due to scaling problems. The global investment bank increased its prediction bitcoin price of $146K last November.
Jamie Dimon, JPMorgan CEO, is still skeptical about cryptocurrency. He repeatedly cautioned against investing in cryptocurrency, especially bitcoin, because they have no intrinsic worth.