A recent survey by banking giant JPMorgan has uncovered a startling decline in the confidence that institutional traders have in blockchain technology. With only a small minority retaining their faith in the tech’s potential, concerns about the future of blockchain are mounting.

A Sharp Decline in Blockchain Believers

The survey, which encompassed the perspectives of over 4,000 institutional traders, indicates a precipitous drop in confidence. In stark contrast to the 25% of respondents who, in 2022, saw blockchain as a burgeoning technology, only 7% continue to hold this view for the coming three years—a 72% decrease.

Blockchain Still in the Race Despite Skepticism

Despite the significant downturn in confidence, blockchain technology maintains its position as the third most prospective technology in the eyes of traders, trailing behind API integration, which captured 13% of respondents’ confidence, and artificial intelligence/machine learning, which a commanding 61% view as promising.

Crypto Sentiment: A Mixed Bag

Regarding cryptocurrency, the survey paints a complex picture. A vast majority of 78% of traders have no intention to engage in crypto trading. On the other hand, 9% are already trading digital assets, with an additional 12% considering a foray into the crypto market within the next half-decade.

Investment and Fundraising Trends

Q3 2023 has been a challenging period for blockchain and crypto investments, as reported by Galaxy Digital. The industry experienced its lowest figures since Q4 2020 in terms of completed deals and total capital invested. Despite these hurdles, the fundraising environment might be showing signs of recovery, with venture capitalists raising $1 billion—an increase for the first time since the slump began in Q3 2022. New fund launches also saw a modest rise. However, the sizes of median and average funds have taken a hit, shrinking considerably from their peak during the last bull run.