2 years ago
JPMorgan has told its clients that ethereum is losing crushed to rival cryptocurrencies, specified arsenic solana (SOL), successful the non-fungible token (NFT) marketplace owed to sky-high transaction fees connected the network. “It looks like, akin to defi apps, congestion and precocious state fees has been inducing NFT applications to usage different blockchains,” said JPMorgan.
Ethereum Losing Ground successful NFT Market, Says JPMorgan
Global concern slope JPMorgan sent a enactment to clients past week explaining that ethereum is losing crushed to rival cryptocurrencies, specified arsenic solana (SOL), successful the non-fungible token (NFT) market.
JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, elaborate that precocious state fees and congestion person pushed NFT apps distant from the Ethereum network. The analysts noted that Ethereum’s NFT measurement stock has fallen from 95% astatine the commencement of 2021 to astir 80%.
Comparing NFT apps to decentralized concern (defi) apps, Panigirtzoglou wrote:
It looks like, akin to defi apps, congestion and precocious state fees has been inducing NFT applications to usage different blockchains.
JPMorgan’s planetary markets squad recovered that the Solana web successful peculiar has been seizing marketplace stock from ethereum successful caller weeks.
The analysts warned that if the inclination continues, it could interaction ethereum’s price. At the clip of writing, the terms of ETH is $3,250.28 based connected information from Bitcoin.com Markets. Panigirtzoglou elaborated:
If the nonaccomplishment of its NFT stock starts looking much sustained successful 2022, that would go a bigger occupation for ethereum’s valuation.
Newer blockchains — specified arsenic Solana, Wax, oregon Tezos — are attracting NFT developers with overmuch little transaction fees, the JPMorgan study notes.
JPMorgan is not the lone large concern slope that sees imaginable successful solana. Bank of America said past week that solana could take marketplace share from ethereum and go the Visa of the integer plus ecosystem.
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Do you hold with JPMorgan’s analysts regarding ethereum losing marketplace stock successful the NFT marketplace and solana gaining ground? Let america cognize successful the comments conception below.
Kevin Helms
A pupil of Austrian Economics, Kevin recovered Bitcoin successful 2011 and has been an evangelist ever since. His interests prevarication successful Bitcoin security, open-source systems, web effects and the intersection betwixt economics and cryptography.
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