According to JPMorgan analyst, Terra (LUNA), Avalanche (AVAX) and four other Ethereum competitors pose a serious threat to ETH’s throne in 2022. Details of the analyst’s views on these six altcoins Cryptocoin. com
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6 altcoin projects threaten ETH
Analysts at global banking giant JPMorgan say Ethereum (ETH) rivals will challenge DeFi dominance of the top altcoin in the crypto markets this year. In a recent report, analysts led by Nikolaos Panigirtzoglou, managing director of JPMorgan, say that ETH’s 70% market share in the DeFi space will continue to decline because the “sharding upgrade” of blockchain is at least a year away. Ethereum’s market share in the DeFi space has already dropped 30% since January 2021. Analysts say in the report:
In our minds, the optimistic view of ETH’s dominance is at risk. This may be because the scaling of the Ethereum network, which is necessary for the Ethereum network to maintain its dominance, comes too late.
According to Panigirtzoglou, such as Terra (LUNA), Solana (SOL), Avalanche (AVAX), Phantom (FTM), Tron (TRX), layer-2 scaling solution Polygon (MATIC), and Binance Smart Chain (BSC) Ethereum rivals are gaining ground against the second-largest crypto by market cap in terms of growth through adoption. Also, according to the report, some developers may not return to ETH after the “shard upgrade” is complete. The report says:
Ethereum’s relative valuation relative to its rivals reflects its declining share of DeFi. The risk for ETH is that by the time-sharing implementation in 2023, competitors’ ecosystems will have grown so large that activity will not collectively return to the Ethereum network. In other words, Ethereum is currently striving to maintain its dominance in the application space, in a race that, in our view, is far from a given.