Is JP Morgan right about the crypto foam market?

[ad_1]

JP Morgan speculated on another bearish phase after looking at the extraordinary monthly pickup in US stocks. According to the bank, more and more retail investors spent on US equities during the summer of 2021. Moreover, this wave of equity investments also spread to “altcoins” in August, as investors have joined the non-fungible token (NFT) frenzy. But, according to analysts at JP Morgan, the crypto market looks “foam” for the time being, indicating that a rolling phase could be imminent.

“The crypto-currency markets [are] sparkling again, ”said JPMorgan. The bank also pointed out that the altcoin market has seen a sharp increase, from 22% of the cryptocurrency industry in early August to 33% in early September.

The growing popularity of NFTs and Defi has impacted the price of smart contract cryptos, such as Solana, Binance Coin, and Cardano, while Ethereum’s alt-coin dominance remains unchanged.

Top Altcoins in the ETH CryptoMarket

Ethereum (ETH) maintains its dominance in the altcoin market as it continues to post exceptional rises and trade numbers, staying well above the $ 3,900 levels, with a weekly increase of 21.01 percent , at the time of publication. Recent CoinGape coverage also confirmed ETH’s upside potential with positive activity on the chain and miner balances tripled in one month.

GROUND

In the race to integrate operational smart contracts, Solana leads the charge in seventh position, with a market cap of over $ 41 million, beating Dogecoin which stood at just over $ 31 million, at the time. of the report. Also, at the time of writing, Solana’s weekly rise is 51.15%.

THERE ARE

Cardano ($ ADA) is another altcoin that has seen a bull run instead of its next Alonzo upgrade launch, slated for September 12. Charles Hoskinson, the head of Cardano updated the community, saying the upgrade is going as planned and soon a green signal for the launch. Cardano’s market cap is approaching $ 94 million with a weekly increase of 3.22% at time of printing.

BNB

JP Morgan also mentioned Binance’s native token, Binance Coin (BNB) in the 2021 hit altcoins. After BNB’s beer sale in July instead of a regulatory crackdown, it hit a four-month high at the end of the year. August at $ 520. At the time of the report, BNB was at a market cap of over $ 83 million with a weekly increase of 3.80%, according to coinmarketcap.

“The share of altcoins looks rather high by historical standards and, in our opinion, is more likely to be a reflection of the foam and ‘mania’ of retail investors rather than a reflection of a trend. structural bullish, ”concluded JPMorgan.

Disclaimer

The content presented may include the personal opinion of the author and is subject to market conditions. Do your market research before investing in cryptocurrencies. The author or publication assumes no responsibility for your personal financial loss.

About the Author

[ad_2]