JPMorgan links the increase in the capitalization of stablecoins with the future growth of the market

An increase in the share of stablecoins in the crypto market may indicate the upcoming growth of digital currencies, JPMorgan noted. The capitalization of such assets in the middle of this month reached a record high.

In a message to clients, the head of the bank’s analytics department, Nikolaos Panigirtzoglou, noted that the volume of stablecoins in the market increased to 14%.

“The share of stablecoins in the overall cryptocurrency market looks extremely high, which indicates that ordinary cryptocurrencies are oversold and the possibility of significant growth from current values,” the expert emphasized.

CoinShares noted that the total amount of assets under management has reached the lowest level since February last year. The company’s report says that the outflow of funds from crypto funds amounted to almost $40 million.

However, despite the bearish trend, investors continue to invest in digital currencies — since the beginning of this year, the industry has attracted $403 million. American, European and Brazilian exchanges recorded capital inflows.

The outflow of funds from ETH was $70 million last week, and almost $460 million since the beginning of the year. And the Solana project seems to be taking advantage of investor concerns about the ETH2 merger. Since the beginning of the year, the inflow of funds into the crypto-coin amounted to $109 million.

The head of Bitcoin Suisse, Giles Keating, is confident that although the crypto industry is going through a turning point, key systems are stable. In his opinion, BTC and ETH do not face serious problems, and the market fall is a consequence of the collapse of Terra and a number of DeFi projects.

Based on the industry over the weekend, Keating said the market is close to a level where some of the excess leverage has gone and a bottom may be starting to form. Pointing to yesterday’s double-digit rise in the two most popular crypto coins, the analyst said that this indicates the completion of large liquidations in the market.

Let’s see which of the crypto enthusiasts will be right.