- Ethereum market share in NFTs has dropped 15%, according to JP Morgan's recent report.
- Ethereum's scalability issue and high transaction cost drive developers and investors to Solana.
- The Wall Street giant has warned users of Ethereum network congestion risk in NFTs.
- Analysts believe that the Ethereum price trend is bearish in the short term.
Analysts at JP Morgan, a global leader in financial services, have warned investors that Ethereum is losing its market share to Solana. The Ethereum-killer is rising in dominance in the NFT industry.
Ethereum-killer Solana challenges the altcoin's dominance in NFTs
JP Morgan, a global leader in financial services, has warned users and investors that Ethereum's high transaction costs and network congestion risk could pose a problem for the altcoin's dominance and adoption.
Analysts at JP Morgan believe that Ethereum-killer Solana captures the largest altcoin's market share as a rival. This could create a "problem for Ethereum's valuation."
JP Morgan's team of analysts led by Nikolao Panigirtzoglou was quoted as saying,
It looks like, similar to DeFi [decentralized finance] apps, congestion and high gas fees has been inducing NFT applications to use other blockchains.
In 2021, Ethereum's dominance was 95% in the NFT market. This share has dropped 15%, and analysts have predicted a sustained drop. The note reads:
If the loss of its [Ethereum's] NFT share starts looking more sustained in 2022, that would become a bigger problem for Ethereum's valuation.
@ShardiB2, a crypto analyst and trader, believes that Ethereum price is at a make-or-break point and could move, either way, hitting both sides of the range.
$ETH
The last 4hr candlestick was one of indecision, hit both sides of of the range almost… looks weak but only takes a spark in either direction here.. pic.twitter.com/nVS83ZyrL5
— Don't Follow Shardi B If You Hate Money $UST (@ShardiB2) January 19, 2022
