JP Morgan analysts issue warning, Ethereum could lose NFT market share to Solana
- 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
— Don't Follow Shardi B If You Hate Money $UST (@ShardiB2) January 19, 2022
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
@AltcoinSherpa, pseudonymous analyst and YouTuber, believes that the Ethereum price trend is bearish in the short term.
FXStreet analysts have evaluated the Ethereum price trend and predicted that the altcoin is preparing to rebound to $4,000.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
