According to JPMorgan Chase & Co., Ethereum’s dominance in the world of decentralized finance (DeFi) will soon be a thing of the past. The market share is currently around 70 percent. Shard Chains are planned for 2023, which should significantly increase the performance of transactions. But by the time that happens, the Ethereum network’s market share could have fallen dramatically, JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a note last Wednesday.
The optimistic view of Ethereum’s dominance is in jeopardy. The scaling required for the Ethereum network to maintain its dominance may come too late
says Panigirtzoglou, according to Bloomberg.
In terms of market capitalization, Ether is still the second largest cryptocurrency after Bitcoin. But its share of total value in the DeFi sector, which was nearly 100 percent in early 2021, dropped significantly over the course of last year. It is notably the Solana, Terra and Polkadot tokens that compete with the ethers for the pioneering role.
Polkadot, Solana, CLOSE, [Binance Smart Chain], Avalanche and Terra have faster initial ecosystem growth than Ethereum
According to a new report from cryptocurrency investment firm Electric Capital. By “initial growth” we mean the number of days since the first “commitment”, that is, the change in the code and the total number of developers since then. Compared to Ethereum at a similar stage, these six Layer 1 ecosystems have more active developers, according to the study.
Solana, Avalanche, BSC and Terra established themselves as new centers for decentralized financial activities (DeFi) last year. The networks support applications for peer-to-peer loans, exchanges, and other transactions. Consequently, their token prices have skyrocketed. If JPMorgan has its way, this could be just the beginning.
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