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

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,”

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.”

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. Perhaps seeing it's potential in the crypto world, the report had called  the exchange “a leading direct beneficiary of cryptomarket growth.” 

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