Jefferies Analysis Highlights Potential Upside for Tokens with Strong Fundamentals
Bank sees institutional de-risking ongoing, highlighting the possibility for tokens backed by strong fundamentals to see growth amidst resilient network activity and expanding Traditional Finance adoption.
Jefferies, a prominent bank in the financial industry, has identified potential opportunities for tokens with solid fundamentals despite the current lack of clear signs indicating a bottom in the crypto market. The bank notes that institutional de-risking is still occurring, but it remains optimistic about the prospects of assets linked to revenue over time. This outlook is fueled by the resilience of network activity within the crypto sector and the increasing adoption of cryptocurrencies in Traditional Finance (TradFi) settings.
Although the market is yet to signal a definitive bottom, Jefferies' analysis suggests that tokens underpinned by robust fundamentals could experience upward momentum. The bank's perspective underscores the potential for growth in revenue-linked assets as network activities remain robust and as cryptocurrencies gain traction in traditional financial systems.