JPMorgan, the US-based multinational investment bank, suggested that after recent small-scale gains in the cryptocurrency market, the sector has 'found a floor'.
In a note to clients, JPMorgan analyst Kenneth Worthington attributed the changing trajectory of the crypto sector to Ethereum's (ETH) Merge upgrade, Business Insider reported.
On the other hand, JPMorgan analysts have noted that the market gains, which resulted in the recovery of $1 trillion in market capitalization, were partly due to reduced fallout from the collapse of the Terra (LUNA) ecosystem.
JP Morgan analysts summarized as follows:
“It appears that the crypto markets have found a floor despite trading volumes still being depressed. What has helped, we think, has been more limited new contagion from the collapse of Terra/Luna. However, we think the real driver has been the Ethereum merge and positive data following the launch of the Sapolia testnet in early July and Ropsten testnet in June, indicating the Merge is viable in 2022.”
