JPMorgan Warns Altcoins and NFTs Are Overvalued
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Sept. 3, 2021

Analysts at banking conglomerate JPMorgan have said the prices of some altcoins and non-fungible tokens (NFTs) have recently exceeded reasonable limits. The experts have said:

"The share of altcoins looks rather elevated by historical standards and in our opinion it is more likely to be a reflection of froth and retail investor 'mania' rather than a reflection of a structural uptrend."

According to them, the share of altcoins in the total volume of the crypto market currently stands at 33%, while it was 22% at the beginning of August. At the same time, experts believe the interest in these assets is unlikely to remain for a long time. However, the current share is still lower than in May, when it stood at 37.6%, compared to 13% in January. According to the publication, altcoins recorded a record 55% share in January 2018, when Bitcoin started to retreat after reaching $20,000 for the first time in its history.

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According to JPMorgan experts, the hype in areas such as DeFi, NFTs and smart contract platforms, such as Solana and Cardano, is a continuation of a trend that emerged this summer in the stock market. The inflow of retail investor assets into the equity market, according to the bank, hit a record $16 billion in July and stood at $13 billion in August. The previous record of $10 billion was reached in June last year.

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