BasEx | JPMorgan Notes Revival in DeFi and NFT Markets
JPMorgan Records Signs of Revival in DeFi and NFT Markets
02.12.2023
JPMorgan Records Signs of Revival in DeFi and NFT Markets

Activity in DeFi and NFT sectors shows "preliminary" signs of recovery as the anticipation of the approval of a spot Bitcoin ETF improves sentiments in the crypto market, analysts at JPMorgan report, according to CoinDesk.

Growth in these areas has been noted after a two-year decline, creating "certain optimism that the worst may be behind us in terms of a medium-term perspective".

"While we do not doubt that the recent revival in DeFi and NFT activity is a positive sign, we believe it's still too early to celebrate this resurgence," experts state.

According to them, the primary reason for the growth in the DeFi segment lies in increased trading activity on decentralized exchanges. Lido Finance's liquid staking also had a significant impact.

As for NFTs, they have gained from the popularity of Ordinals and other protocol analogs. Native "inscriptions" have already been implemented by Avalanche, Fantom, and Polygon.

According to DappRadar, leading NFT marketplaces have shown positive dynamics over the past week.

JPMorgan emphasized that the Ethereum blockchain would benefit less from this growth, as liquidity shifts to younger projects like Aptos, Sui, Pulsechain, Tenet, Sei, and Celestia. The issue is also related to its "scalability, slow transaction speeds, and higher fees".

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