In the report prepared by JPMorgan analysts, it was stated that Ethereum's NFT dominance shrank due to congestion and high gas fees.
JPMorgan analysts had stated that Ethereum's NFT market share had dropped from 95% to around 80% at the beginning of 2021.
The bank highlighted that since August 2021, the Solana blockchain has captured the NFT market share. Ethereum shrinks against Solana as NFT volume continues to expand.
According to the analysts' report, NFTs are more important than DeFi in terms of market share, as they are the fastest growing branch of the crypto industry. The bank has previously warned that Ethereum's DeFi dominance is at risk.
JPMorgan believes that if Ethereum's loss of NFT market share continues into 2022, it could be a major problem for its valuation.
Incredible transaction volume was seen in the industry as the NFT and DeFi industry boomed. The largest smart contract platform Ethereum has seen losses in market share due to scalability and transaction cost issues as mentioned above. While Solana, Avalanche, Terra, Binance Smart Chain come to the fore at this point, experts believe that these projects will increase their share of the cake in terms of blockchain performance.