Analysis: Ethereum market share fell to a four-year low, or may continue to face fierce competition from other public chains

According to BlockBeats news, on February 6, analysts at JPMorgan pointed out in their latest research report that Ethereum is facing continued pressure from competitors. The report shows that despite the overall pump in the crypto market, Ethereum’s performance lags behind BTC and other tokens, with its market capitalization dropping to a four-year low. Analysts believe that the main reasons are twofold: competition pressure brought by public chains like Solana and Layer 2 networks offering lower fees and higher scalability, and the lack of a strong narrative logic compared to BTC’s positioning as a store of value. The analysts also stated that even after the introduction of EIP-1559 in Ethereum’s upgrade to reduce fees and improve scalability, more and more activities are migrating from Ethereum’s main network to Layer 2 networks, thereby weakening the base chain.