Ethereum’s market share in the NFT space is shrinking due to network congestion and high gas fees, JPMorgan said in a report.
Analysts led by Nikolaos Panigirtzoglou wrote in a report published last week that Ethereum’s market share in NFTs has fallen to around 80% from around 95% in early 2021.
Solana, known as the “Ethereum killer,” is taking NFT market share since August, and at a time of rapid growth in the NFT space, the bank said.
JPMorgan cautioned investors that Ethereum’s valuation could face challenges if its share of the NFT space falls further this year.
JPMorgan Chase previously warned that Ethereum’s dominance in the DeFi space is also being shaken because its network is scaling too slowly.