Ethereum Losing Ground to Other Crypto in NFT Market Due to High Transaction Fees, Congestion – Altcoins Bitcoin News
JPMorgan has instructed its purchasers that ethereum is dropping floor to rival cryptocurrencies, equivalent to solana (SOL), within the non-fungible token (NFT) market as a result of sky-high transaction charges on the community. “It seems to be like, much like defi apps, congestion and excessive fuel charges has been inducing NFT purposes to make use of different blockchains,” stated JPMorgan.
Ethereum Dropping Floor in NFT Market, Says JPMorgan
World funding financial institution JPMorgan despatched a observe to purchasers final week explaining that ethereum is dropping floor to rival cryptocurrencies, equivalent to solana (SOL), within the non-fungible token (NFT) market.
JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, detailed that prime fuel 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% at first 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 fuel charges has been inducing NFT purposes to make use of different blockchains.
JPMorgan’s world markets workforce discovered that the Solana community specifically has been seizing market share from ethereum in latest weeks.
The analysts warned that if the pattern continues, it may affect ethereum’s worth. On the time of writing, the value of ETH is $3,250.28 primarily based on knowledge from Bitcoin.com Markets. Panigirtzoglou elaborated:
If the lack of its NFT share begins trying extra sustained in 2022, that may change into a much bigger drawback for ethereum’s valuation.
Newer blockchains — equivalent 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 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 relating to ethereum dropping market share within the NFT market and solana gaining floor? Tell us within the feedback part under.
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