- 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.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Celebrity meme coins controversy continues amid Pump.fun revenue dominance
Pump.fun outperformed the Ethereum blockchain on Tuesday after raking in $1.99 million. Following this achievement, a meme coin based on actress Sydney Sweeney was the subject of controversy after its developers dumped their bags on investors.
PEPE's on-chain metrics indicate potential rally after weeks of silence
PEPE has struggled to see any significant price move after reaching an all-time high in May. Increased adoption rate and low MVRV ratio indicate a bullish run may be on the horizon. A single PEPE outflow from Binance worth $14.7 million gives credence to signs of bullish expectation.
Ethereum has failed to overcome key resistance despite bullish sentiment surrounding ETH ETF
Ethereum (ETH) is down more than 1.4% on Tuesday following another ETH sale from the Ethereum Foundation. Meanwhile, crypto exchange Gemini's recent report reveals that ETH ETF could see about $5 billion in net inflows within six months of launch.
Crypto community blasts Polkadot following report of treasury spending
Polkadot reports $87 million of treasury spending during H1. Crypto community members expressed harsh feelings toward the DOT team's high spending. DOT is up more than 2% in the past 24 hours but risks correction following the report.
Bitcoin: BTC price correction could end in July, according to seasonal data
Bitcoin (BTC) price appears poised for a decline this week, influenced by slight outflows in US spot ETFs, selling activity among BTC miners, and a combined transfer of 4,690.28 BTC to centralized exchanges by the US and German governments.