JPMorgan: Ethereum's market cap share hits a four-year low, may continue to face fierce competition from other public chains

ChainCatcher news, according to The Block, JPMorgan analysts pointed out in their latest research report that Ethereum is facing ongoing pressure from competitors. The report shows that despite an overall rise in the crypto market, Ethereum has underperformed compared to Bitcoin and other tokens, with its market capitalization share dropping to a four-year low.

Analysts believe there are two main reasons: the competitive pressure from public chains like Solana and layer two networks that offer lower fees and higher scalability, and the lack of a strong narrative logic for Ethereum compared to Bitcoin's positioning as a store of value. Even after the Dencun upgrade, activity continues to migrate towards layer two networks.