JPMorgan has informed its shoppers that ethereum is dropping floor to rival cryptocurrencies, comparable to solana (SOL), within the non-fungible token (NFT) market on account of sky-high transaction charges on the community. “It seems to be like, much like defi apps, congestion and excessive gasoline charges has been inducing NFT purposes to make use of different blockchains,” stated JPMorgan.
Ethereum Shedding Floor in NFT Market, Says JPMorgan
International funding financial institution JPMorgan despatched a be aware to shoppers final week explaining that ethereum is dropping floor to rival cryptocurrencies, comparable to solana (SOL), within the non-fungible token (NFT) market.
JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, detailed that prime gasoline charges and congestion have pushed NFT apps away from the Ethereum community. The analysts famous that Ethereum’s NFT quantity share has fallen from 95% in the beginning of 2021 to round 80%.
Evaluating NFT apps to decentralized finance (defi) apps, Panigirtzoglou wrote:
It seems to be like, much like defi apps, congestion and excessive gasoline charges has been inducing NFT purposes to make use of different blockchains.
JPMorgan’s world markets group discovered that the Solana community particularly has been seizing market share from ethereum in latest weeks.
The analysts warned that if the pattern continues, it may influence ethereum’s worth. On the time of writing, the value of ETH is $3,250.28 based mostly on information from Bitcoin.com Markets. Panigirtzoglou elaborated:
If the lack of its NFT share begins wanting extra sustained in 2022, that may change into an even bigger downside for ethereum’s valuation.
Newer blockchains — comparable to Solana, Wax, or Tezos — are attracting NFT builders with a lot decrease transaction charges, the JPMorgan report notes.
JPMorgan is just not the one main funding financial institution that sees potential in solana. Financial institution of America stated final week that solana may take market share from ethereum and change into the Visa of the digital asset ecosystem.
Do you agree with JPMorgan’s analysts concerning ethereum dropping market share within the NFT market and solana gaining floor? Tell us within the feedback part beneath.
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