Ethereum’s dominance in decentralized finance (DeFi) could end soon without a major system upgrade as new players enter the cryptocurrency market, according to JPMorgan.
In a report Friday, the American financial services firm says that the Ethereum 2.0 upgrade, which is expected to make the system more competitive, will not happen until 2023, so it will continue to lose its dominance in the DeFi sector, which is gone. . from almost 100% at the beginning of 2021 to 70% today.
Ethereum’s biggest problems include high transaction processing fees and inadequate transaction speed compared to newer protocols.
” Crypto-currency markets continue to develop and so-called ‘Ethereum killers’ are very popular based on enhancements against Ethereum“, Can we read the document mentioned by BusinessInsider.
The company has selected a group of cryptocurrencies that this company believes could play a role “ killers ethereum“.
JPMorgan names Solana as one of the fastest growing cryptocurrencies, which developers claim can process up to 50,000 transactions per second, compared to 15-45 for Ethereum. It also claims that the currency hosts more than 400 projects in its ecosystem, including stable coins like USDC Circle, as well as wallets, decentralized exchanges, and other DeFi projects.
Launched by one of Ethereum’s co – founders, Charles Hoskinson, Cardano features “intensive research” where each step is “peer reviewed and thoroughly tested” before implementation. It is also launching smart contract capabilities. ” This third generation cryptocurrency is considered more scalable than Ethereum“JPMorgan Summary.
This currency it aims to address some of Ethereum’s scalability and cost issues and is distinguished by its interoperability capabilities in ” enabling blockchains to communicate effectively“. this approach » makes it easier for developers to choose the Polkadot system“Said the financial services company.
Tezos is an open source, user-centric project that allows users to participate in project governance. In addition, Tezos offers valuable security and modularity, and according to JPMorgan, “ it is considered more scalable“.