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On Thursday, the cryptocurrency market continued to fall for the second day in a row, but most of the top 30 altcoins managed to close the day with minimal losses. Ethereum in this rating showed the worst result yesterday, losing 4% per session.
Analysts associate the sharp drop in ETH with the released forecast by JP Morgan, the bank confirmed the fears of investors about the technological loss of Ethereum to competitors, developers of alternative platforms.
Over the past two years, the development of the DeFi industry has become a defining moment for smart contract blockchain models. Investments in Dapps totaled $ 245 billion, showing a 12-fold increase over the past year.
While maintaining the investment rate, the DeFi industry will catch up with the current value of cryptocurrency capitalization, which will raise the value of the utility tokens of blockchains other than ETH. The size of the fees and scalability issues in Ethereum made this platform unattractive for massive investments.
JP Morgan draws attention to the fact that in 2021, the blockchain developed by Vitalik Buterin collected 100% of DeFi investments. By 2022, Ethereum’s share of dominance dropped to 60%.
According to the bank’s analysts, scalability problems will not be resolved until 2023, in the most optimistic scenario. The transition to Ethereum 2.0 is slated for the end of the year, however, changing the current PoW algorithm to PoS will not lower fees to the level of competitors.
It is necessary to launch a shard, which will take a certain amount of time. By that time, competitors will pull more projects into their ecosystems. While Ethereum 2.0 will go along the path of solving scalability problems, the cryptocurrency market will switch to a new format of interaction within the framework of the Metaverse that unites networks into a single ecosystem.
Vitalik Buterin implicated in Bitcoin domination minimums and Ethereum hashrate maximums
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