Morgan Stanley, one of the leading banks of the USA, “Cryptocurrency 201: Ethereum What?” in its report entitled EthereumHe drew attention to the risks related to
The report stated that the presence of a large number of Ethereum in a small number of wallets harms decentralization. to bitcoin It is stated that there is a higher risk of volatility compared to
Analysts led by Denny Galindo stated that Ethereum is less decentralized than Bitcoin.
“Bitcoin top 100 addresses have 14% of the Bitcoin supply, compared to 39% in Ethereum.”
Market Share in Danger
Ethereum The following statements were used in the report, which stated that the market share was threatened by the competitors;
“Ethereum currently has a dominant market share in the decentralized finance and NFT sector. However, this share may decrease as Ethereum challengers increase. BSC, wither and cardano among the main competitors.”
Regulation Risks
Ethereum’s In the report, it was stated that DeFi and NFT areas, which make up a large part of the market share, are at risk of more regulation.
Scaling
Ethereum’s In the report, which stated that it grew faster than Bitcoin, it was reminded that its scalability should be solved for a moment in order to avoid the risks posed by this.
“High transaction fees create scalability issues and threaten user demand.”
Finally, the report drew attention to the risk of Ethereum volatility and stated that since 2018, Ethereum has been 30% more volatile than Bitcoin.
*Not Investment Advice.