According to a report published by JPMorgan analyst Kenneth Worthington, the cryptocurrency market and industry will get a growing acceptance from mainstream investors and companies in 2022.
The global investment bank sees this year as having the potential to be “the year of the blockchain bridge (driving greater interoperability of various chains) or the year of financial tokenization.”
Worthington, the analyst who published the report on the 2022 outlook of crypto markets, sees the crypto market turn even more relevant to financial services. He said, “The applications from crypto have only just begun. Web3.0, greater use of NFTs tokenization are in the line-of-sight for 2022.
“The tokenization and fractionalization as holding particularly large promise as transactions speeds in crypto become more competitive with trad-fi networks,” added Worthington.
The analyst further said that there will be continuous development of crypto technology, mainly driven by the scaling of Layer-1, in addition to the introduction and growth of Layer-2. He noted that Ethereum and Layer-2 will merge to increase the transaction speed and will help in reducing energy consumption.
The analyst also added that Coinbase will continue to be the leading exchange platform to buy and sell tokens.