Ethereum Losing Ground to Other Crypto in NFT Market Due to High Transaction Fees, Congestion – Altcoins Bitcoin News
JPMorgan has instructed its shoppers that ethereum is shedding floor to rival cryptocurrencies, resembling solana (SOL), within the non-fungible token (NFT) market on account of sky-high transaction charges on the community. “It looks like, similar to defi apps, congestion and high gas fees has been inducing NFT applications to use other blockchains,” mentioned JPMorgan.
Ethereum Losing Ground in NFT Market, Says JPMorgan
Global funding financial institution JPMorgan despatched a notice to shoppers final week explaining that ethereum is shedding floor to rival cryptocurrencies, resembling solana (SOL), within the non-fungible token (NFT) market.
JPMorgan’s analysts, led by Nikolaos Panigirtzoglou, detailed that prime gasoline 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% initially of 2021 to round 80%.
Comparing NFT apps to decentralized finance (defi) apps, Panigirtzoglou wrote:
It appears to be like like, much like defi apps, congestion and excessive gasoline charges has been inducing NFT functions to make use of different blockchains.
JPMorgan’s international markets staff discovered that the Solana community particularly has been seizing market share from ethereum in latest weeks.
The analysts warned that if the development continues, it may affect ethereum’s worth. At the time of writing, the worth of ETH is $3,250.28 primarily based on knowledge from Bitcoin.com Markets. Panigirtzoglou elaborated:
If the lack of its NFT share begins wanting extra sustained in 2022, that may turn out to be a much bigger drawback for ethereum’s valuation.
Newer blockchains — resembling Solana, Wax, or Tezos — are attracting NFT builders with a lot decrease transaction charges, the JPMorgan report notes.
JPMorgan isn’t the one main funding financial institution that sees potential in solana. Bank of America mentioned final week that solana may take market share from ethereum and turn out to be the Visa of the digital asset ecosystem.
Do you agree with JPMorgan’s analysts concerning ethereum shedding market share within the NFT market and solana gaining floor? Let us know within the feedback part beneath.
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