JPMorgan: High Gas Fee A Big Problem for Ethereum Valuations!

Date:

In the latest report, banking giant JPMorgan has said that Ethereum’s high gas fee and network bottleneck are putting a high risk for the smart contracts platform. They’ve added that this could be a “problem for Ethereum’s valuation”.
It added that Ethereum could be losing its NFT market share to rival Solana. 

Recently, Solana has been gaining massive ground over the last year. If we look at the data, Ethereum’s NFT market share has already dropped to 80% from 95% in 2021.

Further, in the report which was first shared by Business Insider, JPMorgan said that NFTs are the “fastest-growing universe in the crypto ecosystem”. Therefore, if the loss of its NFT share begins to look more sustained in 2022. It would become a bigger problem for Ethereum’s valuation”.

The JPMorgan analysts also noted that data shows NFT players have been moving from Ethereum to Solana. The reason is the latter’s faster transaction speeds and low costs.

FurtherAnother area that we need to focus upon is Ethereum’s falling share in the world of decentralized finance (DeFi). 

Moreover, last week in a precise note to the clients, JPMorgan analysts led by Nikolaos Panigirtzoglou, wrote:

“It looks like, similar to DeFi [decentralized finance] apps, congestion and high gas fees have been inducing NFT applications to use other blockchains”.

Furthermore,  Ethereum has a big challenge ahead of it to quickly scale to the PoS Ethereum 2.0 or end up losing its market share. They can lose their market share to other competitors like Solana, Avalanche, Cardano, and others.

Leave A Reply

Please enter your comment!
Please enter your name here

Share post:

Subscribe

spot_imgspot_img

Popular

More like this
Related

Binance Concludes Pre-Market for Usual (USUAL) and Announces Spot Trading with Seed Tag

CryptoUpdate.io brings you the latest news: Binance will soon...

MicroStrategy Set to Join Nasdaq 100 With 90% Probability

Polymarket betting trends suggest a 90% likelihood of MicroStrategy,...

Bitcoin Surges Beyond $100,000 as Regulatory Changes Boost Confidence

Bitcoin (BTC) has broken through the significant $100,000 barrier...