Last week, the global investment bank JP Morgan informed its clients that Ethereum is losing to rival cryptocurrencies like Solana (SOL) in the non-fungible token (NFT) market. Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, said the NFT app was kicked out of the Ethereum network due to high gas charges and congestion. Analysts also noted that Ethereum’s NFT volume share has fallen from 95 percent in early 2021 to about 80 percent till now. Comparing the NFT app with the decentralized finance (defi) app, Panigirtzoglou writes: “Similar to the defi app, congestion and high gas charges have made NFT apps use other blockchains.”
JPMorgan’s analysts have noted that the Solana Network, in particular, has gained market share from Ethereum in recent weeks. Analysts warned that if this trend continues, it could affect the price of Ethereum. “If losing his NFT stock in 2022 seems to be more sustainable, it would be a bigger issue for Ethereum’s valuation,” said JP Morgan’s analyst.
Currently, JPMorgan is not the only major investment bank to see potential in Solana. Last week, Bank of America also stated that Solana Ethereum could gain market share and become a visa for the digital asset ecosystem.
What do you think about the other cryptocurrencies like Solana etc? Do you also agree with the JPMorgan analysts on Ethereum losing market share to Solana? To share your opinion, comment below.
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