JPMorgan Outlines Future Forecast for Crypto Markets – Ethereum Upgrades, DeFi, NFTs, And More

This Friday, Financial Analyst Kenneth Worthington came out with the 2022 report on the outlook for crypto markets, where analysts predicted that greater interoperability of various blockchains and financial tokenization could be this year’s hallmarks. “If 2021 was the year of the NFT, we see 2022 as possibly the year of the blockchain bridge…or the year of financial tokenization,” JPMorgan research analysts Kenneth Worthington and Reginald Smith wrote in the report.

Expecting more rapid evolutionary changes in cryptocurrencies market this year, Worthington and Smith anticipate development to particularly soar in the financial services side: “As such, we see the cryptocurrency markets as increasingly relevant to financial services.”

The report said that the growth of the base technology behind crypto will carry on, driven by the scaling of Layer-1 and the introduction and growth of Layer-2.


“[Ethereum’s] use cases are far more significant than what we see for bitcoin,” the analysts wrote this while differentiating between bitcoin and ether as follows, “If bitcoin is digital value, Ethereum is a digital canvas or software platform that allows developers to create new crypto and traditional applications.”

Blockworks articulate that, ethereum is presently a major force in the market, with congestion in its network even driving up the price of each transaction to around $50. Its layer-1 network prioritizes decentralized security over scalability, thus its only able to process about 15 transactions per second.

However, the report showed the plausibility of Ethereum waning in dominance if this continues, as “Solana is much faster than Ethereum. Cardano is more scalable. Polkadot is more interoperable,” the analysts noted. “These advantages could allow these other chains to chip away at Ethereum’s dominance and market value as they facilitate the development of new projects levering Ethereum limitations.”

For this analysts have stated that they expect an update by the crypto around mid-2022 to relieve some of its concerns entailing speed, costs and scalability; they pointed out that Ethereum’s Merge and Layer 2.0 introduction may result in significant reduction in energy consumption whilst also accelerating its transaction speed.

Reliability Of Coinbase

Coinbase is a leading cryptocurrency exchange that witnessed massive growth in the past year, earning upto 73 million verified users as of the end of the third quarter, with a revenue growth of over 300% year on year.

Perhaps seeing its potential in the crypto world, the report had called the exchange “a leading direct beneficiary of cryptomarket growth.” Even Bill Miller showed similar optimism regarding Coinbase in October, adding that he saw the possibility of it reaching a $1 trillion market capitalization. Blockworks commented that Bank of America analyst Jason Kupferberg also upgraded his rating of Coinbase from neutral to buy this week.

Amidst all this, JPMorgan CEO Jamie Dimon remains adamant skepticism on cryptocurrencies, warning people that they hold no intrinsic value.

Click here to read After Shibu Inu, Floki Inu Next In Line To Transition Into A DAO.

Sneh Dokania is an Economics major student with an inquisitive disposition seeking to articulate facts, information and news stories in a candid manner on Clout News.

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