JP Morgan has issued a statement providing an overview of the current crypto scenario. According to JP Morgan analyst Nikolaos Panigirtzoglou, crypto prices have limited upside due to the recent reduction in the percentage of stablecoins relative to the whole crypto market. According to the bank analyst, the percentage of stablecoins in the whole crypto market is not significant, having dropped from 10 per cent to less than 7 per cent. The current stablecoin share is the same as it was in 2020.
Panigirtzoglou emphasised the following points concerning the current crypto market phenomenon:
• The current comeback in the cryptocurrency market under the prevailing negative market characteristics for the last month may slow down.
• The rapid decline of stablecoins in the cryptocurrency market as a whole may severely limit any future rise in crypto markets.
• JP Morgan regards stablecoins as “dry powder” or “spare currency” that could be used to purchase various cryptocurrencies.
Furthermore, high-profile hacks on crypto “bridges”— which let users swap digital tokens across blockchains – are creating opportunities for exchanges and other businesses to offer more secure alternatives.
Crypto exchanges are deepening their capabilities to provide bridge-like services on various blockchains. Users invested in Bitcoin can easily participate in the financial or gaming apps of other networks. Customers can easily swap their Ether for Solana-based non-fungible tokens (NFTs) for buying and selling.
Instead of a bridge, users can deposit an Ethereum-based NFT and withdraw it on Solana using FTX. More software developers, such as the institutional lending platform Maple Finance, are migrating to new blockchains, eliminating the need for bridges in some transactions.
While such precautions may have been in the works prior to the breaches, their importance and appeal have grown after hackers stole more than $1 billion from crypto bridges, such as Wormhole and Ronin.
The price of Bitcoin in the cryptocurrency market fell by 5.03 per cent in the last 24 hours, and it was trading at $33038.97 at 5:00 pm IST. According to Coinmarketcap.com, its dominance in the crypto market is currently at 41.78 per cent, up by 0.21 per cent in the last 24 hours.
In the last 24 hours, Ethereum (ETH) was trading at $2,396.02, and it was down by 6.62 per cent, while Binance Coin (BNB) rose by 7.55 per cent in the same period, and was trading at $331.05. Solana (SOL) was down by 9.78 per cent to $71.52, while Cardano (ADA) was down by 11.28 per cent to $0.6638.
At 5:00 p.m., Dogecoin was trading at $0.1171 on Coinmarketcap.com, down by 7.19 per cent. Its rival, Shiba Inu, was down by 12.87 per cent, and was trading at $0.00001654. Samoyedcoin was down by 7.23 per cent, and it was trading at $0.01092, while Dogelon Mars was down by 15.92 per cent, and was trading at $0.0000006684.
According to Coinmarketcap.com, the global crypto market cap was at $1.51 trillion, a decrease of 5.39 per cent in the last 24 hours, while the total crypto market volume was $110.81 billion, an increase of 10.31 per cent.
Meta Pay was the biggest gainer, gaining 544.59 per cent. It was trading at $0.000003384 at 5:00 pm, according to Coinmarketcap. In contrast, Safefloki witnessed the maximum loss and fell by 86.98 per cent. It was trading at $0.00000000001973.