There are tentative signs of revival in DeFi and NFT markets: JP Morgan | CoinDesk JAPAN

Decentralized finance (DeFi) and NFT activity has revived in recent months, as sentiment in the crypto asset (virtual currency) market has improved on expectations for the approval of a Bitcoin physical exchange traded fund (ETF) in the United States. JPMorgan announced this in a research report on November 30th.

This increase comes after almost two years of weakness, the report says, “thus creating optimism that the worst may be over with respect to the medium-term trajectory of DeFi/NFT activity. ” was pointed out.

“While there is no doubt that the recent resurgence in DeFi/NFT activity is a positive sign, it is too early to get excited about it,” said a team of analysts led by Nikolaos Panigirtzoglou. I’m thinking about it.”

JPMorgan says that given the increase in trading activity (some of which is taking place on decentralized exchanges), we can expect some recovery in DeFi. Liquid staking by Lido is also a factor.

Additionally, Ethereum (ETH) has underperformed other crypto assets, and as other digital assets have achieved more gains in recent months, the total value locked (TVL) They point out that measurements will show some mechanical improvement.

Still, it’s encouraging to see the rise of new chains and DeFi protocols over the past year, including Aptos, SUI, Pulsechain, Tenet, SEI, and Celestia. JP Morgan said. NFTs have also benefited from the emergence of Bitcoin Ordinals.

The Ethereum blockchain does not seem to have benefited from the recent resurgence of DeFi and NFT activity, with concerns related to “network scalability, lower transaction speeds, higher fees,” and increased competition from other layer 1 blockchains. The report points out that the country is facing challenges.

｜Translation and editing: Rinan Hayashi
｜Image: Alina Grubnyak/Unsplash
｜Original text: There Are Tentative Signs of Revival in DeFi and NFT Markets, JPMorgan Says