The recent recovery of the DeFi and NFT markets raises optimism. But the JPMorgan report reveals a completely different reality. The holding company goes so far as to issue cautious warnings.
JPMorgan publishes cautious analysis on the recovery of the DeFi and NFT markets
For 2 years now, the DeFi and NFT markets seem to be slowing down. But according to the report published by The Block on November 30, the situation is about to change. Enough to revive the hope of a large number of investors!
According to this report, the sales volume of NFTs has increased significantly over the past few days. The same is true for the total value locked in the decentralized finance market.
Despite this recent recovery, JPMorgan highlights the need for increased caution. A team led by Nikolaos Panigirtzoglou has indeed analyzed the current situation of the DeFi and NFT markets. The conclusion is as follows: “Certainly, positive signs are emerging after a two-year slowdown. We insist, however, on the prematureness of optimism.”
Ethereum’s Continuing Challenges: An Obstacle to the Recovery of DeFi and NFT Markets
Despite its central role in DeFi and NFTs, Ethereum does not appear to be fully benefiting from the recovery. According to the analyses, high fees and relatively low transaction speeds remain major challenges.
This underperformance compared to other cryptocurrencies results in a disproportionate recovery in total value locked, measured in ether. This observation highlights the complexity of the current landscape.
Towards new opportunities accentuated by the emergence of promising blockchains
THE JPMorgan analysts identify a glimmer of hope in the emergence of new blockchains and platforms. They particularly cite Aptos, Sui, Sei, Celestia and Blur for their potential contributions to the recovery of the DeFi and NFT markets.
JPMorgan, however, highlights the uncertainty surrounding Ethereum upgrades. The transition to emerging opportunities must therefore be carefully evaluated.
Despite the encouraging signs, JPMorgan therefore recommends a vigilant approach towards the recovery of the DeFi and NFT markets.
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