Ether (ETH) has been underperforming compared to other cryptocurrencies due to intense competition from other blockchain networks, according to a research report by JPMorgan. The lack of a compelling narrative and the perception of bitcoin as a store of value and digital gold have benefited bitcoin over ether. Decentralized applications (dapps) have been migrating from the Ethereum network to other chains for better performance, including decentralized exchanges like Uniswap, dYdX, and Hyperliquid. This trend could negatively impact Ethereum by reducing activity on the main network and lowering transaction fees and validator revenue. Ethereum still dominates the stablecoin, decentralized finance (DeFi), and tokenization spaces, but JPMorgan expects intense competition from other networks in the foreseeable future.



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