JPMorgan analysts have warned clients that cryptocurrency markets are looking frothy afterward the August trading nail saw spot market place trading volumes once again top $1 trillion.

In a note to clients reported past Markets Insider, the JPMorgan analysts suggested valuations in crypto markets, especially altcoins and nonfungible tokens (NFT), are getting as well high.

"The share of altcoins looks rather elevated by historical standards and in our opinion it is more probable to be a reflection of froth and retail investor 'mania' rather than a reflection of a structural uptrend."

The depository financial institution's analysts noted that altcoin trading now accounts for near 33% of the total cryptocurrency market, up from just 22% at the kickoff of August.

Although many crypto traders are delighted at the price increases, the analysts believe the apparent uptick in interest may not be substantial enough to be maintained for an extended period of fourth dimension.

The analysts also highlighted the net inflow of retail investments to U.s.a. stocks, which stood at $thirteen billion through Baronial with help from Reddit-inspired 24-hour interval traders, following a record high of $16 billion in July. They believe the buying frenzy spilled over into NFTs, decentralized finance (DeFi) and smart contract platforms, including Solana, Binance Smart Chain and Cardano.

Spot investors have pushed several major altcoins well above their previous all-time highs. Cardano (ADA) traded in a higher place $3 for the first time on Thursday, and Solana (SOL) is up over 400% since the commencement of August, co-ordinate to CoinMarketCap.

Bitcoin (BTC) has as well shown tremendous forcefulness by rallying dorsum to a higher place $l,000 for the first time since May 2022.

Related: Surge in action and token prices show 'DeFi Summer 2.0' already started

Meanwhile, OpenSea, ane of the largest NFT marketplaces, has seen trading book on its platform increase past over 76,000% since the kickoff of 2022. Trading volume had surpassed $four billion by Tuesday, Aug. 31, according to DappRadar.

Figures for OpenSea in August. Source: DappRadar

Figures from Dune Analytics bear witness that the trading volume of DeFi coins increased 152% calendar month-on-month in Baronial, bringing total trading volume past $eleven billion. Several trading platforms and DeFi protocols accept reached milestones, with Uniswap surpassing Coinbase's daily trading book on Monday and Synthetix regaining $1 billion in full value locked.