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quad

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Business Insider
Business Insider

JPMorgan says ethereum is losing ground to rivals in the NFT market, which could boost the likes of solana​

[email protected] (Harry Robertson) - 37m ago


  • High gas fees and congestion have pushed NFT apps away from the ethereum network, JPMorgan said.
  • The bank's analysts found ethereum's NFT volume share has fallen from 95% at the start of 2021 to around 80%.
  • If the trend continues, it could start hitting ethereum's price, JPMorgan's markets team said.
Ethereum is losing ground to rivals such as solana in the NFT sector of the cryptocurrency universe, due to sky-high transaction fees on the network, JPMorgan has said.


Ethereum's volume share of non-fungible token trading has fallen from around 95% at the start of 2021 to around 80%, according to JPMorgan's analysts, led by Nikolaos Panigirtzoglou.
"It looks like, similar to DeFi apps, congestion and high gas fees has been inducing NFT applications to use other blockchains," Panigirtzoglou said in a note sent to clients last week, referring to apps built for decentralized finance.
The bank's global markets team found that the solana network in particular had been seizing market share from ethereum in recent weeks.
"If the loss of its NFT share starts looking more sustained in 2022, that would become a bigger problem for ethereum's valuation," Panigirtzoglou said.
Non-fungible tokens, or NFTs, are crypto assets that represent ownership of items such as pieces of digital art, video clips, and virtual clothing.
The now roughly $12 billion NFT market has boomed over the last year, with one digital art NFT selling for $69 million in March 2021. Bored Apes and CryptoPunks, two types of digital avatars, are some of the most popular NFTs.
The ethereum cryptocurrency network, founded in 2015, is the technology that underlies the vast majority of NFT buying and selling. Yet traders are becoming increasingly frustrated with congestion and very high transaction or "gas" fees on the network, which often add more than $80 to a purchase.

Newer blockchains such as solana are now muscling in, attracting NFT developers with much lower transaction fees. Other networks, such as wax or tezos, are also jostling for position, JPMorgan said.
Ethereum has also been ceding market share in the world of decentralized finance. DeFi apps allow people to carry out financial transactions, trade or sign "smart contracts" without the need for intermediaries such as banks and clearing houses.
Cardano, one of a number of rival networks sometimes dubbed "ethereum killers", has been a particular beneficiary in the DeFi space.
However, ethereum remains by far the dominant blockchain when it comes to both NFTs and DeFi. The total value of projects locked on the ethereum network stood at around $156 billion — almost double that of the next 10 networks combined — analysts at the Coinbase exchange estimated last week.
Ethereum developers are racing to try to solve the problem of high gas fees. But a crucial network upgrade known as "sharding", intended to add more capacity to the network, is not due until early 2023.
Ether, the cryptocurrency on the ethereum network, was down 3.4% to $3,162 on the Coinbase exchange Tuesday. It's been hit by a broad sell-off that has whacked tech stocks and digital assets.
Read the original article on Business Insider
Solana is centralized. That brings risks. It's easy to have low fees and fast transactions on a centralized network like Solana or Binance Smart Chain. The trick is achieving that on a decentralized network like Ethereum.

 

q6543

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Still haven't seen a high volume washout and we're holding very strong through this market correction, especially going from zero to pricing in 5 rate hikes this year( I don't see more than 3)

Still averaging into my top 7 chains every Sunday afternoon.

My thesis is money will flow to the top.
 

Coosawjack

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Global Financial Crisis:

  • Russian Central Bank set to prohibit all Crypto Currencies such as #Bitcoin in the country, including transactions, mining and circulation. In a statement issued on Thursday, the Central Bank said that “the status of the Russian ruble, which is not a reserve currency, does not allow Russia to take a soft approach or ignore the growing risks” from Crypto Currencies that have several characteristics of a pyramid scheme.”
  • Russian Central Bank set to prohibit all Crypto Currencies such as #Bitcoin in the country, including transactions, mining and circulation. In a statement issued on Thursday, the Central Bank said, “The status of the Russian ruble, which is not a reserve currency, does not allow Russia to take a soft approach or ignore the growing risks from Crypto Currencies.”
  • Thurs. 20 Jan. was a seriously painful day for the markets and all ended, again, in the red.
 

Weather Man

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The Turks that fled into BTC to escape their currency shitshow have to be shaking their heads.
 

black4vcobra

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Obviously. That 8-10 BTC is shaking the market.

Must be! It's nothing to the market but I'd like 8 BTC if anyone wants to give them away. It's just some code on a screen right?

On a more serious note, I put half my crypto investment into LTC since it was seemingly undervalued and had high technical upside. Now i'm barely in the green on that stupid coin while i'm still up 6-7x on both BTC and ETH.
 

cobracide

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Must be! It's nothing to the market but I'd like 8 BTC if anyone wants to give them away. It's just some code on a screen right?

On a more serious note, I put half my crypto investment into LTC since it was seemingly undervalued and had high technical upside. Now i'm barely in the green on that stupid coin while i'm still up 6-7x on both BTC and ETH.
I was mining litecoin in 2012.
 

cobracide

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Oh wow, probably worth pennies at that point and i bet mining was very productive. You probably made 10s to 100s of thousands on that coin then.
After the difficulty on Bitcoin went too high for GPU mining, went to Alt-Coins. Would mine off a server package that self-adjusted for the most profitable coin.
 

98SVTContour98

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I dont even feel anything

giphy.gif
 

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