JPMorgan: "DeFi growth falls short of expectations... Investors remain skeptical"

Global investment bank (IB) JPMorgan diagnosed that "the growth of the DeFi (Decentralized Finance) industry falls short of expectations."

According to CoinDesk on the 7th (local time), JPMorgan released a report with this content the previous day (6th). In the report, JPMorgan stated, "The growth of the DeFi and asset tokenization industries has consistently fallen short of expectations," and added, "the recovery since the 2022 'Crypto Winter' remains stagnant."

JPMorgan pointed out the total value locked (TVL) in the DeFi industry. JPMorgan noted, "DeFi's total value locked remains below the record high set in 2021," and emphasized, "Most activity within DeFi is still led by crypto natives and individual investors."

JPMorgan also stressed, "Many traditional investors remain skeptical of blockchain." The transparency of blockchain is cited as a barrier to entry for institutional investors who prefer opaque trading environments. In the report, JPMorgan questioned whether regulatory changes alone could resolve fundamental issues and stated, "Since fintech has already improved the speed and efficiency of the current system, the urgency to introduce tokenized alternatives has diminished."