Wall Street giant JP Morgan, already calling for the sale of at least one crypto market already this year, warned of “bubbles and retail investor enthusiasts” currently rushing through the crypto market-Ethereum rival Solana. , Binance BNB, Cardano.
BNB prices in Solana, Cardano and Binance have risen in spectacular clips in recent months. Solana’s Soltoken has entered the top 10 of the crypto market and is the focus of attention, following both BNB and Cardano. Solana increased by another 30% at this time yesterday, adding a whopping 5,000% from this time last year.
In a note to clients, JP Morgan’s managing director Nikolaos Panigilzoglow said that individual investors are pushing small cryptocurrencies to unprecedented highs, and Bitcoin’s market share is He said it looks “unpleasantly low” by historical standards.
“August non-fungible token rally and decentralized financial activity pick-up will not only be on Ethereum, but also on alternative cryptocurrencies that are planning to promote or promote smart contracts such as Solana, Binancecoin and Cardano. It helped, “Panigirtzoglou wrote, pointing out the data, showing that so-called altcoin trading currently occupies about 33% of the cryptocurrency market, up significantly from 22% in early August. increase.
“The previous phase of retail investors’ enthusiasts into the crypto market was between early January and mid-May … and retail investors seem to be re-foaming the crypto market. . “
Cryptocurrency prices have fluctuated significantly this week as El Salvador’s plans to adopt Bitcoin as the official currency alongside the US dollar have taken off and attracted media attention.
On Tuesday, Bitcoin prices shocked the crypto market, knocking out prices for Ethereum and its rivals Solana, Binance BNB and Cardano, with nearly 20% selling. However, most major cryptocurrencies are currently bouncing back.
Analysts at JP Morgan said, “The share of altcoin seems to have risen considerably by historical standards, and in our opinion it does not reflect a structural uptrend, but rather bubbles and personal investment. It is likely to reflect the “mania” of the house. “
After Solana dominated the altcoin market last week or so, Cardano is likely to return to shape next week or so as expectations rise ahead of the planned upgrade this weekend.
“The altcoin space is only heading in one direction with ADA as one of its best performing assets,” said Lukas Enzersdorfer-Konrad, chief product officer of the crypto exchange Bitpanda, in an email comment. It states. “Cardano’s Alonzo upgrade and smart contracts arriving on the network are imminent, and prices are rising.”
“Cardano is currently the third largest cryptocurrency in the world after’scene stealer’Bitcoin and Ethereum,” said Nigel Green, CEO of financial advisory group de Vere, in an email, saying Cardano since January. Pointed out a 1,668% price increase in Cardano.
“This impressive momentum is set to accelerate further towards the end of the year. Cardano is expected to hit a record high and reach more than $ 4 by the end of 2021.”