Ethereum is undoubtedly the leading blockchain in DeFi, but this could be about to change as analysts at JPMorgan have noted that the dominance of the asset in the space could already be fading.
According to the analysts, the rise of smart contract-enabled protocols like Terra, Avalanche, and Solana have shown that the lead of Ethereum is not absolute in DeFi.
These projects, it was revealed, have eaten into its dominance, and they could potentially charge further impact in this new year.
Ethereum is losing dominance in DeFi
To put this in perspective, Ethereum’s market share of DeFi TVL was almost at 100% at the beginning of 2021. However, that figure had dropped to around 65% towards the end of the same year.
Nikolaos Panigirtzoglou, the team leader of the analysts, wrote that the major cause of the lost ground could be tied to the scalability of the ETH network.
Per the note, the scaling upgrade needed by Ethereum to maintain its dominance of the space might arrive too late.
“Et
We współpracy z: https://cryptoslate.com/here-is-why-ethereums-dominance-in-defi-is-falling/
