Altcoin valuations, primarily linked to NFT, have become exaggerated. This view was presented by JPMorgan analysts in a new note circulated by Market Insider.
“The share of altcoins appears overvalued relative to past dynamics. We view this more as a retail-investor mania than a reflection of a structural uptrend,” the analysts said.
They commented on data showing that by the end of summer, the share of altcoins in total trading volume on centralized platforms rose from 22% to 33%.
Experts drew a parallel between inflows of retail investors into the U.S. stock market—driven by Reddit community activity—and the NFT buying frenzy, with DeFi. This contributed to a sharp rise in the prices of Solana (SOL), Binance Coin (BNB) and Cardano (ADA).
According to OpenSea, OpenSea’s NFT marketplace trading volume over the last 30 days surpassed $4 billion.
According to DeFi Llama, users locked in into decentralized protocols more than $170 billion.
On August 30, the price of SOL for the first time in history surpassed the $100 mark. On September 3, the token displaced Dogecoin from seventh place in the top-10 market-cap ranking, reaching $140.
On September 2, ADA rose to a record $3 amid smart-contract testing on the cryptocurrency’s testnet. As of writing the asset was trading near that level, according to CoinGecko.
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