The altcoin’s big rally in recent weeks would possibly have encouraged many retail investors to dive back into the crypto markets, but analysts at JPMorgan Chase.
What happened: According to a report by Markets Insider, JPMorgan warned that crypto markets “looked frothy again” in a note earlier this week.
In particular, local crypto tokens from some contract platforms such as Solana (CRYPTO: SOL), Cardano (CRYPTO: ADA) and Ethereum (CRYPTO: ETH) have recorded the maximum three-digit percentage gains in recent months.
However, JPMorgan believes this has less to do with biological expansion and the adoption of individual platforms than with the movements of Reddit-inspired day traders.
Attributing the maximum value share to a retail investor buying to make a song that makes a song sing that has spread to altcoins, NFT, and DeFi, analysts noted that altcoins now account for 33% of the crypto market, up from just 22% in early August. .
“The percentage of altcoins is higher through old criteria and, in our view, is more likely to reflect the foam and ‘mania’ of retail investors than a mirrored picture of a structural uptrend,” they said.
Price Action: At the time of publication, the main virtual asset Bitcoin (CRYPTO: BTC) is trading above $50,626, gaining 1. 85% in the last 24 hours.
Meanwhile, Solana hit the all-time high of $141. 50, raising as much as 22. 81% over the next day.
Ethereum also gained 5. 27% during the following day and has been looking to recoup $4,000. At the time of writing, ETH is trading at $3,978.