JPMorgan: Ethereum is losing ground in the crypto market

Analysts at JPMorgan, one of the largest U.S. banks, have noted a significant weakening of Ethereum’s position ETH $2,775.14 Bridged Ether (StarkGate) 4.18% Market capitalization $0.24 billion VOL. 24 hours $1.79 billion in the cryptocurrency market. The reason is the growing competition from alternative blockchains.

Experts explain that Ethereum is losing its market share primarily due to competition from Solana SOL $173.05 Solana 0.21% Market capitalization $84.58 billion VOL. 24 hours $0.46 billion and L2 solutions that offer users lower transaction fees and better network scalability. An additional pressure factor was the migration of important protocols such as dYdX and Hyperliquid to their own networks, which leads to a decrease in blockchain revenues.

According to JPMorgan analysts, Ethereum has failed to secure the status of an investment asset, unlike bitcoin BTC $96,639.61 Bitcoin -1.01% Market capitalization $1.92 trillion VOL. 24 hours $2.01 billion , which investors perceive as a key tool for preserving capital. However, Ethereum still maintains its leadership in decentralized finance, tokenization, and stablecoins, although its dominance in these segments may also weaken.

To attract large capital, the Ethereum Foundation and project co-founder Бутерін" href="https://noworries.news/biography/vitalij-buterin/" data-bio-id="3642">Vitalik Buterin are investing in blockchain-based corporate solutions. However, analysts predict that competition will intensify in this area in the near future.

These conclusions are confirmed by the words of Ki Young Ju, founder and CEO of the analytical company CryptoQuant. According to him, the crypto community no longer sees Ethereum as a platform offering revolutionary decentralized applications.

This situation may indicate fundamental changes in the cryptocurrency market, where the monopoly of individual projects is gradually being replaced by a more competitive environment with a variety of technological solutions for different user needs.