JPMorgan analysts emphasized that Ethereum’s dominance in the DeFi space may continue to decline as alternative projects gain strength.
JPMorgan: Ethereum’s DeFi Dominance May Continue to Decline
According to Bloomberg, JPMorgan noted that with the late launch of the Sharding feature, which is the most critical development in scaling the Ethereum network, Ethereum’s dominance in the DeFi space may be furthered over time. Emphasizing the scaling problems in Ethereum, JPMorgan analysts stated that many alternative projects are gaining strength day by day during this time.
High transaction fees on the Ethereum network have recently led more investors to alternative smart contract projects. Especially Avalanche and Solana were among the most prominent projects here. These two smart contract platforms have seen a significant increase in their TVL (Total Value Locked) recently. Nearly 100% DeFi dominance of Ethereum has dropped to 70% during this time.
JPMorgan: Scaling Solutions May Be Too Late
Analysts led by Nikolaos Panigirtzoglou stated that the decline in Ethereum’s DeFi dominance may continue until 2023, when scaling solutions come, in his statement on the subject, “Optimistic views on DeFi dominance of Ethereum are at risk.” gave his words.
Ethereum alternative projects such as Avalanche and Solana have recently encountered a serious demand and exhibited very high price performances. Avoiding high transaction fees in Ethereum, the investor first adopted these two smart contract platforms. In this context, Ethereum’s dominance in the DeFi space has also seen a serious decline in recent history.
The information contained in this article does not constitute investment advice. Investors should know that cryptocurrencies carry risks due to their high volatility and should perform their transactions in line with their own research.