Enthusiasm for altcoins may fade, JPMorgan says
JPMorgan expressed this distrust of altcoins in an investor memo, which was reported by Business Insider. According to the institution, the rush for non-fungible tokens (NFT) and decentralized finance (DeFi) has made it possible to carry certain altcoins other than Ether (ETH). Cardano’s ADA hit an all-time high this week, and Solana’s SOL broke into the top 10 most capitalized cryptocurrencies, overtaking Dogecoin (DOGE).
But would it be short-lived? JPMorgan believes the cryptocurrency market, and altcoins in particular, has turned “sparkling”. Altcoins would be carried by bubbles, which allowed them to gain momentum against Bitcoin. According to data from CoinMarketCap, altcoins now represent 56% of total cryptocurrency capitalization. They still only represented 51% at the end of July.
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A trend that will be reversed?
If we look at the trading volume, the difference is even clearer: altcoins currently represent 33%, compared to 22% at the beginning of August. But according to JPMorgan, this will only be temporary:
“The share of altcoins looks pretty high compared to historical levels, and we think it’s more likely to be bubbles and retail investor enthusiasm, rather than a reflection of a trend in the structural increase. “
It is in any case certain that the altcoins remain at the party for the moment. Smart contract platforms in particular arouse the interest of buyers. The inevitable Ether (ETH) has thus managed to cross the threshold of 3,700 dollars for a long time, and could sail towards 5,000 dollars in the coming days. To be continued…
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About the author: Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.