Ethereum is losing market share of NFTs to Solana, says JPMorgan – Cryptocurrencies

Ethereum (ETH) dominance in the non-fungible token (NFT) market is shrinking because of congestion and high fees charged by the network, analysts at JPMorgan say in a report.

In a note, the team led by analyst Nikolaos Panigirtzoglou points out that the market share of NFTs on the Ethereum network has dropped to around 80%, well below the 95% recorded at the beginning of 2021.

The investment bank also stated that Solana (SOL) is the blockchain that captures the most market share of NFTs since August, when the NFT market began to expand with greater force. However, the Ethereum network has also been losing ground even at a time of falling volume of NFTs traded in recent weeks.

Also according to the report, NFTs represent “the fastest growing universe within the cryptocurrency ecosystem” and Ethereum’s share of this market is expected to become more important than its share in decentralized finance (DeFi).

In early January, the bank communicated that Ethereum’s dominance in DeFi was also in jeopardy as the network’s scalability gain, necessary to maintain its hegemonic status, could come too late.

JPMorgan further warned that if it continues to lose market share from NFTs in 2022, Ethereum could have trouble maintaining its market cap.

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