- High expectations of a spot Bitcoin ETF being approved in the United States have revived activities in the DeFi and NFT markets
- Research by JPMorgan noted that the revival may indicate the end of the prolonged crypto bear market
- The research has however warned that it may be too early to celebrate
Research by financial heavyweight JPMorgan has disclosed that the excitement around a possible approval of a spot Bitcoin (BTC) exchange-traded fund (ETF) in the United States has spilled over to the DeFi and NFT market. Although the bank said that a revival in the market may indicate the end of the ongoing crypto winter, it noted that it’s too early to officially declare the start of a bull season. JPMorgan said the web3 space has been registering increased trading activities, with another report attributing a considerable chunk of these activities to web3 gaming.
Ethereum Hasn’t Benefited
According to JPMorgan, the revival can also be seen with the growth of liquid staking platforms like Lido and an increase in the number of newly launched DeFi-focused platforms like SUI and Aptos
Researchers have however noted that popular NFT and DeFi networks, especially Ethereum, haven’t benefited from the high expectations of a U.S.-listed spot Bitcoin ETF.
According to the report, issues like high fees, low transaction speeds and competition are dragging the Ethereum blockchain down. The researchers also observed that other cryptos have outperformed Ether (ETH) in gains in recent months.
A Bitcoin ETF Won’t Bring New Capital
The research’s findings come two weeks after the bank noted that a Bitcoin ETF won’t bring new capital into the crypto market and two months after the bank’s Onyx network recorded its first collateral transaction.
With JPMorgan anticipating the end of the prolonged bear market, it’s to be seen whether the approval of a U.S.-listed spot Bitcoin ETF will officially mark the start of a bull market.
