According to JPMorgan analysts, improving investor sentiment and growing interest in Ethereum in anticipation of the transition to PoS have led to a recovery in the crypto market.
The bank's experts have identified signs of completion of the "intensive phase" of the wave of leveraged liquidations in long positions.
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In particular, they have pointed to a narrowing in the spread between stETH and ETH:
"The extreme phase of backwardation seen in May and June, the most extreme since 2018, appears to be behind us."
The company's analysts have drawn attention to the increased activity on the Ethereum network, which they have associated with the update of The Merge, scheduled for next September 19.
According to them, the market recovery is not accompanied by an influx of funds into cryptocurrency funds. In their opinion, the engine of growth is the activity of retail investors.