A JPMorgan market strategist says the emergence of so-called “Ethereum killers” is threatening Ethereum’s dominance in the smart contract space and the price of ETH.
According to the statement made to Business Insider by Nikolaos Panigirtzoglou, the asset research analyst of the banking giant; The “fair value” of ETH should be around $1,500. ETH, on the other hand, is trading at $2,935 at the time of writing, according to data from CoinGecko.
Panigirtzoglou’s assessment of ETH represents a potential loss of over 50 percent for the leading smart contract platform.
According to Panigirtzoglou’s statement; team uses activity metrics such as the network’s miner and user base when trying to arrive at a fair value estimate:
“We look at the hashrate and the number of unique addresses to try to understand the value of Ethereum. [Ve sonuç olarak gerçek değerde] We are having a hard time getting above $1,500. There is a question mark here because the current price represents an exponential increase in usage and traffic that may not occur.”
According to Panigirtzoglou, competition from other smart contract networks such as Cardano (ADA), Solana (SOL), Avalanche (AVAX), and Binance Chain (BNB) makes Ethereum less attractive.
“It’s not unique. You already see competition from Binance and Solana. And there will be more of that in the future.”
According to CoinGecko data, Ethereum’s dominance currently accounts for 17.89 percent of the total crypto market, which is roughly the same level as 30 days ago. The market dominance of Bitcoin (BTC) is currently 40.65%.
Less than two months ago, JPMorgan, a bank that previously tried to stay away from cryptocurrencies, began allowing wealth management clients to invest in a variety of crypto funds, including the Ethereum Trust, Ethereum Classic products, Grayscale Bitcoin Trust, Bitcoin Cash Trust, and Osprey Funds’ Bitcoin Trust. was reportedly allowed.
Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility. Finally, Koinfinans and the author of this content cannot be held responsible for personal investment decisions.