Crypto

ETH Devs Avoid Warnings of JPMorgan About DeFi Dominance End

According to the latest JPMorgan analysts, they stated "Ethereum is currently in an intense race to maintain its dominance in the application space."

Ethereum spread the idea of the current decentralized finance, where the developers of the app based on ETH turned it into a sector worth more than $250 billion. However, ETH part reduced this year.

In an investor note on Wednesday, the group leader of investment bank JPMorgan Chase analysts said that “sharding” which is a way to drastically scaling up the transactions number that can be executed on a blockchain “might arrive too late” for ETH to stop the the huge market competition. Moreover, some alt coins like Terra, Binance Smart Chain, Solana and Avalanche were able to provide plenty of similar apps types exactly like ETH but with more speeds and much lower fees.

The leader note said:

“Ethereum is currently in an intense race to maintain its dominance in the application space with the outcome of that race far from given, in our opinion,”

However, many ETH contributors and devs said that these reports of the demise of the network are too much over and exaggerated.

Tim Beiko, the Ethereum core developer meetings coordinator said:

“Overall, it seems a bit like a lazy / very high level critique,” and added “Rollups are live today, and sharding will lower their costs, but the tech works and is now massively derisked,”

As for Tegan Kline, the co-founder of The Graph said:

“Ethereum is still the most used chain when you look at the data,” and  “Of the 26 networks that The Graph supports, 66.7% of the queries are on Ethereum.”

DeFi or decentralized finance, indicates the blockchain based apps which allow the traders to make the financial transactions which they might otherwise require a broker for. This apps dismiss pokers to make trading, lending borrowing or even saving much more easier and possible on P2P basis, which means no one has the access or dominance over you personal assets. Moreover, MakerDao was the first ever DeFi app to gain traction on Ethereum back in 2017, following this date ETH has exploded widely.

ETH is also turning to a proof-of-sake system, however, Ethereum 2.0 was deliberate and depends on whom you ask. The current chain is about to merge with the beacon chain this year, right after that, the ETH core devs will be able to concentrate on the sharding.

As writing this article, Ethereum is trading in red with 2.72% down, and a price of $3,098.67 according to coinmarketcap.com.

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