JPMorgan warns that Ethereum will continue to lose value – BeInCrypto

JPMorgan maintains that Ethereum will continue to lose appeal to cryptocurrency users compared to DeFi and metaverse cryptocurrencies, and predicted that its capitalization will decline in the remainder of the year.

JPMorgan senior analyst Nikolaos Panigirtzoglou Held that Ethereum (ETH) will continue in its bear cycle this year and will be until 2023 when its range improves, but it will be out of date by then “for the rest of the market” of cryptocurrencies.

As Nikolaos Panigirtzoglou put it in a JPMorgan research note:

Cryptocurrencies such as Terra, Binance Smart Chain, Avalanche, Solana, Fantom, Tron, Polygon, among others, have been gaining the largest market share in the DeFi market, and those competitors have received a large amount of funding and established incentives. to increase usage on their own systems ”.

Recently, Glassnode stated that the number of wallets that Ethereum (ETH) has reached 71,364,788 million and this growth continues apace. The number of non-zero balance ETH addresses reached a new high almost on New Years Eve, December 29, according to data from the service that monitors on-chain metric movements and currency flows for Bitcoin.

Among the reasons is due the growing interest and rise of the non-fungible token (NFT) market In 2021 they may have influenced these numbers as a large part of these tokens are minted on the Ethereum network, attracting more and more curious, enthusiasts and experts.

Ethereum continues to divide opinions

JPMorgan analyst believes Ethereum to be continue losing its dominance in the financial sector, despite its ETH 2.0 update, which will begin to function normally until 2023, what he described as “too late” so that it reaches the rest of the most important cryptocurrencies.

Data from DefiLlama show that the dominance of Ethereum was 97% until January 2021 and by the end of the year it was reduced to 63%, due to the growth of Terra, Binances Smart Chain, Avalanche and Solana, blockchains independent companies with a lot of potential for this year, above ETH.

According to new data released by Glassnode on January 3, 2022, 8,875,394 ETH are now staking in deposit contracts for Ethereum 2.0, which is equivalent to the current price of around 33 billion dollars. Just six months earlier, in July, that number hovered around 6.6 million ETH, representing an increase of 32%.

These constantly growing data are helping to witness the bullish sentiment towards Ethereum, and many are heavily reliant on the rollout of Ethereum 2.0, which is expected to take place in late 2022, if at least the project doesn’t suffer, there are no further delays.

Similarly, on New Years Eve, other data from Glassnode revealed that the number of Ethereum wallets had just hit a new high of 71,364,788.

Disclaimer

All information on our website is published in good faith and for general information purposes only. Any action the reader takes on the information found on our website is strictly at your own risk.

We wish to give thanks to the author of this article for this incredible content

JPMorgan warns that Ethereum will continue to lose value – BeInCrypto

Dispensary Business News