JPMorgan recently made a historic move, when it started to offer its clients access to a variety of cryptocurrency options. The move, while being controversial among some, was seen to be a smart move given the current climate. And since their new options, they have seen demand for crypto options skyrocket.
More specifically, they have seen many clients flow into buying altcoins and NFTs at a record pace. While the stock-buying frenzy of various investors sees no end in sight, the global investment bank was caught off guard by the demand.
To better address the incredible success they have seen in both the crypto and stock market, JPMorgan released a note earlier during the week. They noted that they saw a net flow of $16 billion in July and $13 billion in August. Both of these values set new records for the company. More importantly, the crypto market saw a collective rise of about 83% over the past three months. And most of this growth came through altcoins.
The note also mentioned that Bitcoin saw a decrease in its overall cryptocurrency market cap, which reduced from 47% to 41%. Ethereum managed to grow during this slight dip, with its market cap reaching 20% from 18%. Cardano also saw its share rise to 4%, while Binance Coin grew to 3.62%.
They continued that one of the best performing coins of the year was Solana. With a price of $141, it has managed to reach the top ten cryptocurrencies by market cap. It ranked number seven with its total market capitalization exceeding $40 billion, showing an incredible growth of 310% over the last month.
Analysts at JPMorgan shared their insight into the current market. They said that altcoins represented the largest chunk of the crypto market at around 33%. They managed to grow by 11%, from their previous margin of 22% from early in August.
However, they were also quick to mention that they do not see this as a structural uptrend. Instead, they believe that the current market is a reflection of retail investor mania and froth. Therefore, they believe that this incredible growth will not last very long.
Other than diving into the crypto market, JPMorgan also has plans to use blockchain. More specifically, they intend on using blockchain to improve their infrastructure to transfer funds. They launched “Confirm,” which is a system that would help them bring down the number of returned or rejected transactions. Both of these transactions would be faultier due to mismatched payment details, which the new system can help avoid.