JPMorgan: Investors Are Leaving Crypto Industry
According to analysts at JPMorgan Bank, they have recorded a sharp decline in the capitalization of fiat-backed digital currencies, which suggests investors are leaving the crypto sphere.
The company’s analysts have said that they are seeing a narrowing of the digital asset market amid increased panic among traders, provoked by the liquidity crisis of many large companies, including FTX. In fact, the reduction in the capitalization of stablecoins indicates a decrease in the amount of money flowing into the crypto sphere.
In May, before the collapse of the Terra ecosystem, the total value of tokens pegged to fiat money exceeded $186B.
For comparison, at the beginning of last year, the capitalization of stablecoins was just over $30 billion, and at the beginning of 2020, it was about $5 billion.