Ethereum’s NFT volume share has dropped from 95% at the start of 2021 to 80% in what JP Morgan analysts believe is due to high transaction fees.
Analysts led by Nikolaos Panigirtzoglou observe that the network is losing market share to competitors like Solana.
Panigirtzoglou says in a note to clients that the protocol’s congestion coupled with high gas fees are forcing clients to use other blockchains.
Solana is the main network that is closing in on Ethereum in what the analysts think could be a problem to the latter’s valuation.
The NFT market has boomed over the past year, with one digital NFT art piece selling for $69 million in March last year.
Ethereum network was founded in 2015 and supports most of the NFTs, but huge gas fees, which at times add over $80 to purchase, are raising concerns.
The network’s native token, ETH, is down 3.4% at $3,162 amid stocks and cryptocurrency market rout.
Source: Market Insider