Ethereum, the world’s second-largest cryptocurrency has outperformed in 2021 while delivering nearly 220% returns in a single year. However, off lately, the ETH price has largely followed Bitcoin and has been moving sideways.
As we enter 2022, the Ethereum blockchain continues to face major challenges in terms of scalability. The latest report from JPMorgan states that Ethereum’s dominance in the area of decentralized finance (DeFi) could be at considerable risk in 2022.
They noted that the Ethereum Sharding implementation remains the “most critical” update for scalability and if delayed, it could mean that Ethereum could lose its market share to other Layer 1 competitors that are pushing deeper into the DeFi space.
Ethereum currently holds a 70% market share in DeFi and this could drop further in 2023, wrote JPMorgan analysts led by Nikolaos Panigirtzoglou. The analyst further stated:
The “optimistic view about Ethereum’s dominance is at risk. Scaling, “which is necessar
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