According to a recent study by JPMorgan, blockchain appears to be losing momentum as more and more institutional investors lose faith in the technology.
A recent JPMorgan survey of more than 4,000 institutional investors found that only 7% of respondents maintain confidence in blockchain technology as a future asset over the next three years, indicating that confidence is growing. A surprising change can be seen.
This figure marks a significant 72% decrease from 2022, when 25% of respondents considered blockchain as a promising technology. Despite this decline, blockchain technology still holds his third position in terms of promise, after API integration (13%) and artificial intelligence/machine learning (61%).
When it comes to cryptocurrencies, the survey found that 78% of respondents have no plans to trade digital assets, while 9% said they are already engaged in crypto trading. Additionally, 12% of respondents are considering entering the crypto market within the next five years.
As Galaxy Digital reported in Q3 2023, the bottom seems to be nowhere in sight. Both the number of completed transactions and total capital invested recorded the lowest numbers for blockchain and cryptocurrencies since the fourth quarter of 2020. Analysts at Galaxy Digital said the venture capital funding environment remains very difficult, but “may be improving.”
As of Q3 2023, the market witnessed $1 billion raised by venture capitalists, the first increase since the decline began in Q3 2022. Additionally, new fund launches increased to 15 from 12 in the second quarter. However, the company's research blog shows that median and average fund sizes have declined significantly since the highs of the previous bull market.
