JPMorgan claimed in a recent research that Ethereum’s high gas charge and network congestion pose a significant risk to the smart contract platform. This could be an “issue for Ethereum’s valuation” according to JPMorgan.
JPMorgan went on to say that Ethereum might be losing market share in the NFT space to rival Solana, which has been getting a lot of steam in the last year. According to the data, Ethereum’s NFT market share has already decreased to 80 per cent from 95 per cent at the start of 2021.
According to JPMorgan’s analysis, which was initially posted by Business Insider, NFTs are the “fastest-growing universe in the crypto ecosystem.” As a result, if Ethereum’s loss of its NFT share becomes more prolonged in 2022, it will become a bigger challenge for its valuation.”
NFT participants have been migrating from Ethereum to Solana because of the latter’s better transaction speeds and lower fees, according to the JPMorgan analysts.
Hmm, do you use Ethereum? Do you find its gas fees high? Will you be migrating from Ethereum to Solana? Comment below.
