Market

Ethereum’s 70 percent DeFi market share will continue to decline as the network’s scalability comes too late

Analysts at global banking giant JPMorgan say Ethereum’s competitors will challenge the top altcoin’s DeFi dominance in the crypto market this year.

In a recent report, analysts led by JPMorgan CEO Nikolaos Panigirtzoglou said that ETH’s 70 percent market share in the DeFi area will continue to decline as the blockchain sharding upgrade remains at least a year away.

Eth’s market share in the DeFi space has dropped 30% since January 2021.

“We see that the optimism of the ETH dominance rate is in jeopardy. This is because the scaling of the Ethereum network, which is essential to maintaining the dominance of the network, may come too late. “

According to Panigirtzoglou, Ethereum competitors such as Terra (LUNA), Solana (SOL), Avalanche (AVAX), Fantom (FTM), Tron (TRX), Layer 2 scaling solution Polygon (MATIC) and Binance Smart Chain (BSC) are gaining Market shares from the second largest cryptocurrency in terms of growth from its introduction.

Additionally, according to the report, some developers may never return to ETH once the sharding upgrade is complete.

“The relative valuation of Ethereum compared to its competitors reflects the declining DeFi market share. The risk for ETH is that by the time sharding is implemented in 2023, the competitor’s ecosystem will have grown so much that no one wants to return to the Ethereum network.

In other words, Ethereum is currently in a bitter race to maintain dominance in the scope, with no result known from our point of view. “

Ethereum is trading at $ 3,111 at press time, 30% off its 30-day high of $ 4,439.

Join Bitcoin Magazine Telegram to keep track of news and comment on this article: https://t.me/coincunews

Follow the Youtube Channel | Subscribe to telegram channel | Follow the Facebook page

Annie

Championing positive change through finance, I've dedicated over eight years to sustainability and environmental journalism. My passion lies in uncovering companies that make a real difference in the world and guiding investors towards them. My expertise lies in navigating the world of sustainable investing, analyzing ESG (Environmental, Social, and Governance) criteria, and exploring the exciting field of impact investing. "Invest in a better future," I often say. That's the driving force behind my work at Coincu – to empower readers with knowledge and insights to make investment decisions that create a positive impact.

Recent Posts

Will Bitcoin Crash or Soar Past $105K in 2024?

Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…

19 minutes ago

The Best Crypto for Passive Income? 10% Weekly Gains and 20% Final Surge—Qubetics Mirrors Cosmos’ Early Success!

There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…

48 minutes ago

Cosmos Developer Interchain Foundation Sold 3000 ETH Today

Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…

2 hours ago

Zircuit Launches ZRC Token: Pioneering the Next Era of Decentralized Finance

George Town, Grand Cayman, 22nd November 2024, Chainwire

2 hours ago

Inflation Warning By Vanguard Amid Tariffs And Labor Issues

Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…

2 hours ago

Clanker Token Trading Volume Hits $59.8 Million High On November 21

Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…

3 hours ago

This website uses cookies.