Ethereum’s high transaction fees may be accelerating its downfall. This is according to a new analyst report by JP Morgan.
The bank says that congestion on the Ethereum blockchain, coupled with its high gas fees is causing its dominance to shrink.
In the past one year, Ethereum’s market share has dropped from 95% to 80%, and this downward trend continues.
Benefiting from all this is the Solana blockchain, which has captured a respectable market share of the NFT volume.
According to the report, JP Morgan sees NFTs as potentially more important for Ethereum moving forward, than Decentralized Finance (DeFI), since they are the fastest growing universe in the crypto ecosystem.
This is just the second worst news for Ethereum this month, as JP Morgan had earlier warned that its dominance of DeFi was also at risk.
Should this loss of market share continue this year, JP Morgan sees it affecting Ethereum’s valuation.