Crypto Markets Look Frothy, consistent with JPMorgan
JPMorgan published a note Wednesday on the exchange and cryptocurrencies. It explains that retail investors bought stocks at a record pace over the summer with an estimated net flow into the U.S. securities market of $13 billion in August after reaching a record high of virtually $16 billion in July.
The JPMorgan analysts asserted that the stock-buying frenzy spilled over into altcoins and non-fungible tokens (NFTs) in August, and therefore the surge in NFTs and decentralized finance (defi) activity has boosted the worth of certain cryptocurrencies, like ethereum, solana, and cardano.
Cryptocurrency markets [are] looking frothy again.
Cryptocurrency market gained about 80% in price over the last three months, mostly price increase led by altcoins. The world crypto market cap is currently $2.28 trillion. Bitcoin’s dominance slipped from 47% on Aug. 1 to 41.39% Saturday. Ethereum Ether at the moment represents more than 20% of the complete crypto market cap, followed by Cardano ADA at more than 4% rate of coin market cap. Solana (SOL) represents almost 2%.
Solana has become one amongst the top-performing cryptocurrencies this year. At the value of $141.04 per coin, SOL is now the seventh-largest crypto by capitalisation. The coin gained 310.8% during the last month and three,277.6% year-to-date.
The JPMorgan analysts noted that altcoin trading now represents about 33% of the crypto market, emphasizing that it absolutely was a giant increase from the 22% reading in early August. They concluded:
The share of altcoins looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor ‘mania’ rather than a reflection of a structural uptrend