JPMorgan Report States Ethereum Might Lose Defi Dominance Due to Scaling Issues – Bitcoin News

JPMorgan Report States Ethereum Might Lose Defi Dominance Due to
Scaling Issues – Bitcoin News

    A note from JPMorgan states that Ethereum may be at risk of losing its dominance due to its inability to quickly produce effective scaling solutions. A note written by Nikolaos Panigirtzoglou, the company’s chief global strategy director, further states that other smart-backed blockchains, instead of Ethereum side chains or other Ethereum-based solutions, have this market share. Etherea’s dominance at stake According to JPMorgan

    A report from JPMorgan states that Ethereum may continue to lose dominance in decentralized finance in the coming year. A note written by Nikolaos Panigirtzoglou, Executive Director of Global Markets Strategy at JPMorgan, states that this dominance is threatened by Ethereum’s difficulties in expanding its network.

    The note stated that scaling:

    What is necessary for Ethereum to maintain its dominance may come too late.

    Ethereum has focused on a L2 (Layer 2) plan that supports the rise of rollups and side chains in order to try to find alternatives to the intense activity and high fees that occur on its Layer 1 blockchain. which was estimated at almost 100% at the beginning of last year, has now fallen to an estimated 70% of the market.

    Rise of new challengers

    Panigirtzoglou further explains that more problematic is the fact that Ethereum has lost some of its influence in the defi arena in favor of other chains, instead of its own L2 scaling solutions. Solana, Avalanche, BSC and Terra, a group of cryptocurrencies and networks with the support of clever contracts, known as “ethereum killers”, gain market share and create a community behind them.

    This has also led to an increase in the price of their respective native tokens. While Ethereum was also able to increase the price of its network asset, ether (ETH), each of the above tokens surpassed last year’s ETH performance. Sharding, which is the strategy that Ethereum will use for scaling in its L1 blockchain, will not arrive until next year after the merger, which will change the proof-of-work (PoW) consensus to a more energy-efficient proof-of-stake (PoS) consensus.

    Concluding remarks:

    In other words, Ethereum is currently racing intensively to maintain its dominance in the application space, and in our opinion the result of this race is far from a given.

    What do you think about JPMorgan’s opinion on Ethereum and its possible future in defi? Tell us in the comments section below.

    sergio@bitcoin.com '

    Sergio Goschenko

    Sergio is a cryptocurrency journalist based in Venezuela. He describes himself as late in the game, he entered the cryptosphere when prices rose in December 2017. He has experience in computer engineering, lives in Venezuela and has been hit by a cryptocurrency boom on a social level, offering a different perspective. about success in cryptocurrencies and how it helps non-banks and the poorly served.

    Image credits: Shutterstock, Pixabay, Wiki Commons

    Disclaimer: This article is for informational purposes only. It is not a direct offer or request for an offer to buy or sell, or a recommendation or support for any products, services or companies. Bitcoin.com does not provide investment, tax, legal or accounting advice. Neither the Company nor the Author shall be liable, directly or indirectly, for any damage or loss caused or allegedly caused by or in connection with the use of or reliance on any content, goods or services referred to in this Article.

    @مرسلة بواسطة
    كاتب ومحرر اخبار اعمل في موقع crypto .

    إرسال تعليق