Global investment bank JPMorgan says cryptocurrency markets “look foamy” as retail investors spill over from the stock market in cryptocurrencies and non-fungible tokens (NFTs).
According to JPMorgan, crypto markets look frothy
JPMorgan released a note on the stock market and cryptocurrencies on Wednesday. She explains that retail investors bought stocks at a record pace over the summer, with net inflows into the U.S. stock market estimated at $ 13 billion in August, after hitting a record high of nearly $ 16 billion in July.
JPMorgan analysts claimed that the August share buying spree spilled over into altcoins and non-fungible tokens (NFTs), and the surge in NFTs and decentralized financial activity (Defi) had the price of certain cryptocurrencies like Ethereum, Solana. lifted up, and Kardano.
Cryptocurrency markets [are] looks frothy again.
As reported by Bitcoin.com News, the crypto market gained around 83% in value in the past three months, led by altcoins. The global crypto market cap is currently $ 2.28 trillion. Bitcoin’s dominance slipped from 47% on August 1st to 41.39% on Saturday. Ethereum (ETH) currently accounts for 20.13% of the total crypto market, followed by Cardano (ADA) with 4.11%. Solana (SOL) accounts for 1.80%.
Solana has developed into one of the most powerful cryptocurrencies this year. With a price of $ 141.04 per coin, SOL is now the seventh largest cryptocurrency by market capitalization. The coin gained 310.8% last month and 3,277.6% year-to-date.
JPMorgan analysts noted that altcoin trading now accounts for about 33% of the crypto market, stressing that this was a big increase from the 22% in early August. They came to the conclusion:
The proportion of altcoins looks rather high in historical comparison and in our opinion is more a reflection of the foam and the “mania” of private investors than a reflection of a structural upward trend.
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