Wall Street giant JP Morgan analysts warned investors about Ethereum with their latest report.
According to the report of Bloomberg, JP Morgan Chase analysts said in their latest report that Ethereum is at risk of losing its dominance in the DeFi space.
JP Morgan stated that more and more competitors are coming into the DeFi space, which negatively affects both the DeFi market dominance and price of Ethereum.
Chase analysts have stated that the Ethereum 2.0 update, which involves breaking up Ethereum blocks into smaller and more manageable segments, could probably reach its final stage in 2023.
It was stated that this means that Ethereum’s dominance in the DeFi market will continue to decline.
Because Ethereum’s dominance in the DeFi market, which was 100% at the beginning of 2021, dropped to 70% by the end of the year.
Analysts evaluated that the falling DeFi dominance due to the delay in the Ethereum 2.0 update may also negatively affect the price of Ethereum.
Analysts led by Nikolaos Panigirtzoglou said in their report that “optimistic views about Ethereum’s dominance are at risk” and that the scaling necessary for the ETH network to maintain its dominance may come too late.
Finally, analysts wrote that instead of worrying, they think that the launch of Ethereum 2.0 should be moved forward in order for Ethereum to reclaim its throne.
*Not Investment Advice.