JPMorgan Shares Predictions on Crypto Markets, Ethereum’s Upgrades, Defi, NFTs

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.

Worthington details:

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.