Ethereum’s Market Share Hits Four-Year Low
JPMorgan analysts report that Ethereum is losing ground to competitors, with its market cap share dropping to a four-year low. Increased adoption of rival blockchains and Layer 2 solutions is eroding Ethereum’s dominance.Why Ethereum Is Underperforming
Ethereum has lagged behind both Bitcoin and altcoins in recent market rallies. Analysts attribute this to two key factors:- Competition from Solana and Layer 2 networks – Many users are migrating to cheaper and more scalable alternatives.
- Lack of a clear narrative – While Bitcoin is increasingly seen as a store of value, Ethereum struggles to define its long-term investment appeal.
Key Projects Leaving Ethereum
Decentralized applications like Uniswap, dYdX, and Hyperliquid are moving to application-specific chains to reduce costs and improve performance. Uniswap’s shift to its own blockchain, Unichain, could significantly impact Ethereum’s transaction fee revenue.Ethereum’s Institutional Strategy
To counteract this trend, Ethereum co-founder Vitalik Buterin and the Ethereum Foundation have invested in Etherealize, a startup aimed at increasing Ethereum’s adoption in traditional finance. However, JPMorgan warns that competition from other networks will remain intense.
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