The analysts of the renowned World Bank claim that Ethereum is obtaining bad results as the competition of rival blockchains intensifies.
According to analysts of JP Morganit is likely that Ethereum Keep facing the “intense competition” of the other rival blockchain, which is not a good omen for the second most important cryptocurrency in market capitalization.
“While the cryptocurrency market in general increased around US elections, Ethereum’s native cryptocurrency“JP Morgan analysts wrote by the general director Nikolaos Panigirtzoglou in a report on Wednesday.
Bad data for Ethereum
The ETH share in the total capitalization of the cryptocurrency market fell to its lowest level in four yearswhich highlights the growing pressure of competitors, according to analysts.
Analysts point to two main reasons: the growing blockchains competition as Solarium and the Layer 2 networks that offer lower rates and greater scalability, and the lack of a strong Ethereum narrative compared to the positioning of Bitcoin as a value reserve.
Even after the update Dencun of Ethereum Blobs introduce to reduce commissions and improve scalability, the activity has increasingly migrated from the main network of Ethereum to layer 2 networks, weakening the base chain, according to analysts.
Source: Ambito
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