JP Morgan found that less than 8% of institutional traders believe in blockchain.
According to a recent survey by JPMorgan, blockchain appears to be losing momentum as more and more institutional traders lose faith in the technology.
A recent survey conducted by JPMorgan of over 4,000 institutional traders shows a surprising shift in trust, as only 7% of respondents maintain trust in blockchain technology as a future asset class over the next three years. there is.
This figure represents a significant decrease of 72% compared to 2022, when 25% of respondents considered blockchain a promising technology. Despite this decline, blockchain technology still ranks third in terms of outlook, behind API integrations (13%) and artificial intelligence/machine learning (61%).
When it comes to cryptocurrencies, the survey found that 78% of respondents had no plans to trade digital assets, while 9% said they were already engaging in cryptocurrency trading. Additionally, 12% of respondents are considering entering the cryptocurrency market within the next five years.
According to a report from Galaxy Digital, there appears to be no bottom in sight for the third quarter of 2023. Both the number of completed transactions and total invested capital hit the lowest figures for the blockchain and cryptocurrency sector since the fourth quarter of 2020. Analysts at Galaxy Digital said the venture capital funding environment remains very challenging but “could improve.”
As of the third quarter of 2023, the market recorded its first upward trend since the decline began in the third quarter of 2022, with venture capitalists raising $1 billion. New fund launches also increased from 12 to 15 in the second quarter. However, median and average fund sizes have declined significantly compared to their peaks during the last bull run, according to the company’s research blog.