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Investment banking and asset management firm JMP Securities says that âThe crypto economy is entering the mainstream,â emphasizing that crypto âadoption and early use cases have established âescape velocity.â However, the firmâs analysts noted that âthe industry is still in its formative stage.â
âThe Crypto Economy Is Entering the Mainstreamâ
JMP Securities recently published a research note that discusses cryptocurrency adoption. Noting that âThe crypto economy is entering the mainstream,â the analysts wrote:
The crypto market has come a long way in its short existence, and we believe both adoption and early use cases have established âescape velocity,â whereby binary arguments about its fate are all but off the table at this point.
The analysts further explained that âThe industry is far from perfect today, scams do exist, regulation is undeveloped, and the industry needs more education given technical aspects of the space that make adoption and usage not always intuitive.â
Nonetheless, they believe that the industryâs potential âwarrants continued investment and development,â adding, âWe anticipate many of the current perceived negatives in the space will continue to improve with further maturation and time.â
They added that in the early days of bitcoin, âthe crypto ecosystem was unproven and uncertain.â However, they elaborated: âToday, we believe that negative view has been substantially de-risked with adoption acceleration and expanding utility strengthening the foundation, already looking more like a relatively established network, despite what we view to be the early innings of an exponential longer-term growth cycle.â
The analysts also see the Nasdaq-listed crypto exchange Coibnase as âa flagbearer in the development of the broader crypto economy.â They concluded:
Despite the exponential scaling of adoption, we think the industry is still in its formative stage, and as use cases for crypto rapidly expand, we see tremendous upside for the companies (like Coinbase) that provide infrastructure to support this growth.
Do you agree with JMP Securities? Let us know in the comments section below.
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