(Markets Insider) JPMorgan strategist says Ethereum’s share of the non-fungible token trading is now around 80%, down from 95% at the start of 2021 as investors move to other networks.
Strategist Nikolaos Panigirtzoglou says the loss of the market share in the NFT market by Ethereum is due to the high transaction fees and congestion on its network.
Panigirtzoglou says close Ethereum rivals, such as Solana, are benefiting in the recent weeks, warning that if the trend continues, it could emerge to be a bigger challenge for Ethereum’s valuation.
JPMorgan says other networks, including Tezos, are gaining traction, with the analysts warning that Ethereum is also losing the market share to the decentralized finance apps, such as Cardano.
The warnings come when Ethereum developers are tackling the challenge of high gas fees, although this is not enough since a network upgrade to boost capacity is scheduled early next year.
The NFT market is valued at about $12 billion after a year of a boom in 2021, although Ethereum still maintains the crown as the leading NFT and DeFi network.
ETHUSD is down -2.24%.
