Recently, JPMorgan has published a report in which it has ensured that 2022 could be the year of greater interoperability between Blockchain networks and financial tokenization. What does it depend on? We tell you!
What will happen in 2022 in the crypto market?
Just as it is believed that 2021 was the year of non-fungible tokens (NFTs), 2022 could be the year of Blockchain networks.
The JPMorgan report, according to Blockworks, was led by Kenneth Worthington and Reginald Smith, who, although they believe that 2022 will be a very important year for the crypto market, assure that it will depend on some factors.
These factors lie in achieving greater integration, capacity and speed in transactions through updates to the Ethereum network and the emergence of second layer solutions.
What will happen to Bitcoin?
The question we all want to answer is: What will happen to Bitcoin in 2022? And, Ethereum? In this regard, JPMorgan ensures that Bitcoin “particularly well designed as a modern store of value, and the solid design has contributed to increase its trust and value.”
However, the researchers also consider that Bitcoin is not yet at the level of other stores of value, such as gold. According to JPMorgan it is due to its limited history. They also believe that the volatility of Bitcoin prevents the crypto from becoming a currency itself.
What will happen to Ethereum?
Now, when it comes to Ethereum, JPMorgan considers the use cases of this cryptocurrency to be superior to those of Bitcoin.
“If Bitcoin is a digital security, Ethereum is a digital canvas or software platform that enables developers to create new and traditional crypto applications,” the JPMorgan analysts wrote.
But Ethereum has a problem: Its network is congested. And furthermore, Ethereum doesn’t communicate well with other Blockchains. And, precisely for this reason, JPMorgan points out that the success of the crypto market this year will depend on the ability to integrate different Blockchain networks. As well as the emergence of layer 2 solutions.
Solana is much faster than Ethereum. Cardano is more scalable. Polkadot is more interoperable, “said the analysts. The point is, these solutions could undermine the dominance and market value of Ethereum in 2022. Still, according to Worthingon and Smith, Ethereum could maintain its advantage if everything that is planned on its Road Map for this year is fulfilled.
What will happen to the DeFi and NFT crypto markets?
Regarding these crypto markets that gained strength in 2021, the researchers highlight that they are still in their early stages of development. And so you have to expect to see greater potential.
“In our future, we see the tokenization (and fractionation) of credit, stocks, parts of real estate (commercial to residential to hotel rooms) and non-negotiable investments, including private equity,” the researchers note.
The researchers pointed out that DeFi’s performance in 2021 was a failure, but, despite this, they assure that it is a sector with great potential.
Keep an eye on Coinbase stocks
Worthingon and Smith noted that the shares of Coinbase, the US crypto exchange, have great potential in 2022. In fact, they assure that they will be a “leading direct beneficiary of the growth of the crypto market.”
Therefore, JPMorgan is of the opinion that the crypto exchange “is still a buy.”
We want to know your opinion! What do you think 2022 holds for Blockchain technology and the crypto market?