Because most decentralized finance initiatives are based on the Ethereum blockchain, the momentum around Ethereum surged and its brightness increased as the pace of development, adoption, and expansion of DeFi projects increased.
It's unclear whether things will continue at this rate, with Ethereum remaining the king of DeFi, especially given the emergence of alternative projects that offer the same features as Ethereum but with lower prices and quicker speeds.
JPMorgan, a pro-crypto Wall Street behemoth, has taken an unexpected stance against the dominating Ethereum blockchain and its digital currency, ETH.
According to JPMorgan, Ethereum is already losing ground to up-and-coming competitors in the decentralized banking space, and might lose considerably more if it does not invest in scalability upgrades.
According to Bloomberg, due to the late debut of Sharding, the most essential breakthrough for scaling the Ethereum network, it is probable that Ethereum may lose its dominance by the time it catches up with the rest of the projects. actually.
There are two primary reasons why Ethereum's dominance in the Defi arena may be challenged.
The first is the scalability issue.
The second factor is the growing number of competitors using their own blockchain networks.
Regarding the scalability issue, despite Ethereum's efforts to address it by planning for the "Sharding" update, which will allow transactions to be completed faster and with reduced costs, this upgrade is still a long way off, with a target date of 2023.
Ethereum has already lost 30 percent of its influence over the decentralized finance market.
Can Ethereum compete with Bitcoin?
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