JPMorgan report says that Ethereum could lose defecting dominance due to scaling problems-

08. Januar 2022

Krypto News Österreich

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In a note from JPMorgan, it is said that Ethereum may lose defi dominance because it is unable to quickly develop effective scaling solutions. In the company, written by Nikolaos Panigirtzoglou, Managing Director of Global Markets Strategy, continues that other new Smart Contracts-capable blockchains are taking this market share instead of Ethereum-Idechains or other Ethereum-based solutions.

Ethereum dominance at the game according to JPMorgan

A note from JPMorgan Dass Ethereum could continue to lose dominance in the area of decentralized finances next year. The note written by Nikolaos Panigirtzoglou, Managing Director of Global Markets Strategy, says that this dominance is at risk due to the problems that Ethereum had in scaling his network.

In the note, it says that the scaling:

What is necessary for the Ethereum network to claim its dominance could come too late.

Ethereum has focused on an L2 (Layer 2)-centered roadmap, which supports the rise of rollups and sidecins to find alternatives to the intensive activities and high fees that occur on its Layer 1 blockchain. Even with this strategy, the proportion of defi dominance, which was estimated to be almost 100 % at the beginning of last year, has fallen to currently estimated 70 % of the market.

The rise of new challengers

Panigirtzoglou continues that the fact that Ethereum has lost part of his influence in the DEF-Arena to other chains is more problematic instead of its own L2 scaling solutions. Solana , avalanche bsc and Terra A group of smart contracts-capable cryptocurrencies and networks that are known as "Ethereum-Killer" " Winned market shares and created a community behind them.

This has also led to a price increase of their respective native tokens. While Ethereum managed to increase the price of its network asset, ether ( eth ), each of the above eth ’s performance last year. Sharding, the strategy with which Ethereum will scale in its L1 blockchain, will only arrive next year after the merger that the proof-of-work (Pow) consensus in a more energy-friendly proof-of consensus (POS).

The note closed:

In other words, Ethereum is currently in an intensive race to assert its dominance in the area of application, although the result of this race is far from given.

What do you think of JPMorgan's opinion on Ethereum and his possible future? Tell us in the comment area below.

sergio goschenko

sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game when he entered the cryptosphere in December 2017. He has a computer engineering background, lives in Venezuela and is affected by the cryptocurrency boom at the social level via crypto success and how it helps the non-banks and under-sector.

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