- August trading boom saw spot market trading volumes surge past the $1 trillion mark
- US stock market bullish sentiments seem to have rubbed on the NFT’s
- Spot investors are patronizing altcoins
Altcoins are booming and making significant gains in the market of crypto assets. However, JPMorgan experts have apprehensions.
JPMorgan analysts are warning clients that the cryptocurrency market is in a volatile state, and the August trading boom saw spot market trading volumes once again top $1 trillion.
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JPMorgan has written to its clients opined that crypto markets, especially altcoins and non fungible tokens (NFT), are surging too high and suggested valuations be done more pragmatically.
Surge fuelled by retail mania than a reflection of a structural uptrend
The way altcoins are surging suggests that it is more on hype than facts. The advisory continued and said that it is more of retail mania than a reflection of a structural uptrend. The analysts noted that altcoin trading accounts for 33% of the total cryptocurrency market. At the beginning of August, it was just 22%.
While the surge has made many crypto traders happy, analysts and experts worry that the upswing bin interest is not sufficiently maintained for an extended period. The analysts also pointed out the net inflow of retail investments to United States stocks, which stood at $13 billion through August with help from Reddit-inspired day traders, following a record high of $16 billion in July. The bullish sentiments seem to have rubbed on the NFT’s, decentralized finance (Defi), and smart contract platforms, including Solana, Binance Smart Chain, and Cardano.
Cardano (ADA) is trading above $3 for the first time
Altcoins are being patronized by spot investors who have pushed the significant altcoins well above their all-time highs. Cardano (ADA) is trading above $3 for the first time on Thursday. As per market data, Solana is also surging in value at an incredible pace and is up 400% since the beginning of August.
BTC is also in a bull run and has surged above $50,000 for the first time since May 19 mayhem which led to the crypto asset losing 50% of its value.
Related: Surge inactivity and token prices show ‘Defi Summer 2.0’ already started
OpenSea is one of the most robust NFT marketplaces and has reported a surge of 76,000% since the start of this year. As per DappRadar, the Trading volume has surpassed $4 billion by August 31.
Dune Analytics figures reveal that the trading volume of Defi coins surged by 152% month-on-month in August. It brought total trading volume past $11 billion. Several trading platforms and Defi platforms have gained significantly. Uniswap surged ahead of Coinbase’s daily trading volume on Monday and Synthetix regained $1 billion in total value.
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