JPMorgan analyst Nikolaos Panigirtzoglou has suggested that the leading altcoin project Ethereum may lose its share in the DeFi sector. According to the analyst, “Ethereum solids” are increasing their share of lockollarsi total value (TVL) and could open a gap that cannot be closed again in 2022. Here are the details…
Sharg, the only weapon of the leading altcoin project
Nikolaos Panigirtzoglou, in a recent research note, said that Ethereum could lose its share of the DeFi pie. According to the analyst, the Ether network plans to split into independent parts to increase its scalability. The sharg technology, which splits databases into lower segments, is one of the main features of the highly anticipated Ethereum 2.0 rise. While the JPMorgan analyst stated that the sharg phase will start in 2023, he thinks that Ethereum will lose its market share to its competitors by then. In the research note, it was also stated that the leading altcoin project would be “too late” to catch up with the rest of the market.
According to defiLlama data, Ethereum’s dominance in the DeFi market has steadily shrunk over the past year. Catering to more than 97% of the DeFi industry in January of last year, Ethereum Terra slid to 63%, with the increasing TVL rate of strong rivals such as Avalanche and Binance Smart Chain. In particular, the fact that Solana and Avalanche rely on their own blockchains seems worrisome to Panigirtzoglou. Also, the Ethereum network is struggling with very slow transactions and high gas fees. Ethereum, which was valued at 396% in 2021, is being lagged behind by its rivals, so a downtrend can be expected in 2022.
- Ethereum price is down 11.27% in the last 24 hours due to a wider market correction triggered by the upcoming interest rate hikes and the drop in the Bitcoin hash rate. At the time of writing, it is trading at $3,387.55.