JPMorgan Chase: The days when Ethereum dominates the DeFi space may soon be over

In a recent research report, JPMorgan Chase analyst Nikolaos Panigirtzoglou predicted that Ethereum will continue to lose its dominance in the decentralized finance field. In order to increase the scalability of the network, it will be divided into independent fragments. Sharding is undoubtedly one of the main functions of the highly anticipated Ethereum 2.0 upgrade. However, since the sharding chain phase is only expected to start in 2023, Panigirtzoglou believes that it is “too late” for the current leader to catch up with the rest of the market. Ethereum's share of the decentralized financial market has been steadily shrinking in the past year. According to data provided by DefiLlama, in January last year, Ethereum's dominance exceeded 97%, but due to the rapid growth of competitors such as Terra, Binance Smart Chain, Avalanche, and Solana, its share of the total value locked in the DeFi agreement Has now shrunk to 63%.