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Blockchain appears to be losing momentum as more and more institutional traders lose their belief in the technology, a recent survey by JPMorgan shows.
According to a recent survey conducted by JPMorgan among more than 4,000 institutional traders, an alarming shift in confidence can be noticed, as only 7% of respondents retain confidence in blockchain technology as a prospective asset over the next three years.
The figure marks a 72% significant decrease from 2022 when 25% of respondents viewed blockchain as a promising technology. Despite this decline, blockchain technology still holds the third position in terms of prospects, following API integration (13%) and artificial intelligence/machine learning (61%).
Regarding crypto, 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.
It appears that the bottom is nowhere in sight, as reported by Galaxy Digital in Q3 2023. Both the number of deals completed and the total capital invested, marked the lowest figures for blockchain and crypto since Q4 2020. Analysts at Galaxy Digital note that the venture capital fundraising environment remains extremely challenging, but “may be improving.”
As of Q3 2023, the market witnessed $1 billion raised by venture capitalists, marking the first uptick since declines began in Q3 2022. Additionally, new fund launches increased to 15 from 12 in Q2. However, according to the firm’s research blog, median and average fund sizes have significantly decreased from their highs during the last bull run.