Ethereum (ETH), the largest altcoin, continues to lag in performance compared to Bitcoin (BTC). Analysts from JPMorgan warn of a possible continuation of this trend.
Ethereum vs Competitors
Recently, Ethereum has been facing intensified competition from other blockchains. Networks like Solana (SOL) and Layer 2 (L2) offer lower fees and better scalability, reducing Ethereum's appeal.
JPMorgan Analysis
According to JPMorgan analysts, Ethereum's market share has dropped to a four-year low in the face of competition from other altcoins and a lack of a compelling narrative to support its growth. Analysts noted two primary factors contributing to this pressure.
Future of Ethereum at Stake
Analysts warn that competition and pressure on ETH's price will persist. Major decentralized applications like Uniswap, dYdX, and Hyperliquid have also switched to their own chains, raising concerns about Ethereum’s long-term revenue potential.
The numerous challenges facing Ethereum highlight the need for new strategies to strengthen its market position. The current pressure may hinder its recovery in the near term.
