Ethereum loses the floor in the NFT market due to high transaction fees and overloading to the ground-old coins due to high transaction fees and overloading

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JPMorgan has informed its customers that Ethereum loses the ground on the market for non -funnible tokens due to the sky -high transaction fees in the network compared to competing cryptocurrencies such as Solana (SOL). "It looks like traffic jams and high gas fees, similar to Defi apps, prompted NFT applications to use other Blockchains," said JPMorgan.

Ethereum loses ground in the NFT market, says JPMorgan

The global investment bank JPMorgan sent a message to customers last week, in which it explained that Ethereum loses the ground for competing cryptocurrencies such as Solana (SOL) on the market for non -fungible tokens (NFT).

The analysts of JPMorgan, led by Nikolaos Panigirtzoglou, explained that high gas fees and traffic jams have replaced NFT apps from the Ethereum network. The analysts found that the NFT volume content of Ethereum dropped from 95 % in early 2021 to around 80 %.

Panigirtzoglou compared NFT apps with decentralized financial apps (Defi) and wrote:

It looks like traffic jams and high gas fees, similar to Defi apps, prompted NFT applications to use other blockchains.

The Global Market Team of JPMorgan found that the Solana network in particular has taken over market shares from Ethereum in the past few weeks.

The analysts warned that the trend could affect Ethereum's price if it continues. At the time of the letter, the price of ETH is $ 3,250.28, based on data from bitcoin.com markets. Panigirtzoglou explained:

If the loss of the NFT share in 2022 looks more sustainable, this would be a bigger problem for the evaluation of Ethereum.

Newer blockchains-such as Solana, Wax or Tezos-attract NFT developers with much lower transaction fees, the JPMorgan report states.

jpmorgan is not the only big investment bank that sees potential in Solana. The Bank of America said last week that Solana could do this and become the visa of the digital asset ecosystem.

Do you agree to the analysts of JPmorgan in the fact that Ethereum loses market shares on the NFT market and Solana wins on ground? Let us know in the comment area below.

Kevin Helms

As a student of Austrian economics, Kevin Bitcoin discovered in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open source systems, network effects and the interface between economy and cryptography.

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