JPMorgan has informed its shoppers that ethereum is dropping floor to rival cryptocurrencies, corresponding to solana (SOL), in the non-fungible token (NFT) market resulting from sky-high transaction charges on the community. “It appears to be like like, just like defi apps, congestion and excessive gasoline charges has been inducing NFT purposes to make use of different blockchains,” mentioned JPMorgan.
Ethereum Shedding Floor in NFT Market, Says JPMorgan
International funding financial institution JPMorgan despatched a word to shoppers final week explaining that ethereum is dropping floor to rival cryptocurrencies, corresponding to solana (SOL), in 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 appears to be like like, just like defi apps, congestion and excessive gasoline charges has been inducing NFT purposes to make use of different blockchains.
JPMorgan’s world markets workforce discovered that the Solana community in specific has been seizing market share from ethereum in current weeks.
The analysts warned that if the development continues, it might impression ethereum’s worth. On the time of writing, the value of ETH is $3,250.28 based mostly on knowledge from Bitcoin.com Markets. Panigirtzoglou elaborated:
If the lack of its NFT share begins wanting extra sustained in 2022, that will turn out to be a much bigger drawback for ethereum’s valuation.
Newer blockchains — corresponding to Solana, Wax, or Tezos — are attracting NFT builders with a lot decrease transaction charges, the JPMorgan report notes.
JPMorgan shouldn’t be the one main funding financial institution that sees potential in solana. Financial institution of America mentioned final week that solana might take market share from ethereum and turn out to be the Visa of the digital asset ecosystem.
Do you agree with JPMorgan’s analysts relating to ethereum dropping market share in the NFT market and solana gaining floor? Tell us in the feedback part under.
Kevin Helms
A scholar of Austrian Economics, Kevin discovered Bitcoin in 2011 and has been an evangelist ever since. His pursuits lie in Bitcoin safety, open-source techniques, community results and the intersection between economics and cryptography.
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