According to a JPMorgan’s analyst, Solana and Tezos have the ability to take on Ethereum’s dominance in the NFT ecosystem.
The NFT market is a massive pie that everyone wants a piece of. According to Nikolaos Panigirtzoglou, an analyst at JPMorgan, Ethereum (ETH) was supposedly the dominator in the first phrase.
It appears that the second-largest cryptocurrency is losing the spotlight to some of its prominent competitors in the non-fungible token (NFT) market.
The Game Changes for Ethereum
Nikolaos’ statement was not the initial warning against Ether. According to previous predictions, many crypto experts expressed concerns regarding its position.
Speaking to Markets Insider, Nikolaos asserted that high fees on the Ethereum network are a key negative factor driving many NFT market participants away from the blockchain and posing a potential threat to the ETH network.
“It looks like, similar to DeFi apps, congestion and high gas fees have been inducing NFT applications to use other blockchains… if the loss of its NFT share starts looking more sustained in 2022, that would become a bigger problem for Ethereum’s valuation.”
Nikolaos had made an emphatic point, specifically about the aforementioned cryptocurrency Solana (SOL).
Both Solana and Ethereum are open-source blockchains. Both support smart contracts, allowing them to host decentralized applications (DApps).
These DApps offer services and products in areas of finance, gaming, and others. Solana is gaining traction and is expected to outperform Ethereum in the near future. As experts predicted, it’s simply a matter of time.
Other networks, in addition to Solana, are attracting NFT developers due to lower transaction fees, according to the analyst.
The bank specifically mentioned Worldwide Asset eXchange (WAX) and Tezos. The NFT marketplace is part of the WAX cryptocurrency ecosystem. The WAX NFT market handled the second-highest volume in November, quickly surpassing Solana and Flow.
Tezos (XTZ) is a well-known open-source blockchain with the potential to challenge Ethereum’s dominance in the NFT.
The global clothing retail giant Gap rolled out its new collection of NFTs on the Tezos blockchain last week, citing the altcoin’s energy efficiency in an announcement.
“Tezos uses a more energy-efficient approach to secure its network, allowing it to operate with minimal energy consumption and a low carbon footprint.”
Ethereum 2.0 is The Solution?
If Bitcoin is the crypto world’s king currency, Ethereum must be the queen in terms of total market capitalization.
With its growing market share in the crypto space, Ethereum has established itself as the most dominant technologically advanced cryptocurrency network, laying the groundwork for a slew of other blockchain projects, development protocols, NFTs, along with several new and innovative products.
Since the conception of Ethereum in 2013 and the launch of the network in 2015, the size of Ethereum has grown exponentially and continues to grow till this day.
If institutional and crypto investors continue to show interest in Ethereum, it will have a long way to go before it can regain its bullish momentum.
The announcement of Ethereum 2.0, a future optimization to the entire network that aims to make Ethereum more scalable, sustainable, and secure, has gotten a lot of attention.
The official launch of Ethereum 2.0 after fully integrating all features on the current estimated completion date of 2022 will mark the beginning of a new era for Ethereum. ETH2 is vital for a number of reasons, the most vital of which is the fee improvement.
Scalability and sustainability concerns have led to the rise of competing alternatives to the on-chain network, such as Solana, Cardano, Algorand, and Polkadot.
As cryptocurrency continues to expand towards the mainstream consumer, the success of ETH2 will determine crypto dominance in the Ethereum network in the future.
Improved scalability and sustainability will not only help Ethereum maintain its current market share in the NFT space, but will also most likely aid in the expansion of mainstream adoption.