The current uptrend of cryptocurrencies could be losing traction given the falling ownership of stablecoins, according to multinational investment firm JPMorgan.

  • JPMorgan noted that the recent rally came after countries imposed economic sanctions on Russia for its invasion of Ukraine, with expectations that digital tokens will be used “more extensively.”
  • The bank noted, however, that the rally could be in its last stages given the sharp decline of stablecoins in the total share of the overall market capitalization of the crypto space.
  • JPMorgan earlier said that the high of nearly 10% share of stablecoins in the total market indicated a further uptrend for cryptocurrencies. This was hinged on the belief that stablecoins represented cash on the sidelines for investors.

The financial giant flagged that the share has since dropped to 7%, and the share of stablecoins no longer looks excessive, making the upside for digital tokens likely to be more limited.

BTC is down 0.65%, ETH is up 1.29%, and ADA is down 1.72%.

Source: Business Insider