Ethereum is losing its foothold in the non-fungible token (NFT) market due to its high transaction fees, according to analysts of JPMorgan.
Source: Business Insider
ETH is down 3.53%, while SOL is down 4.20%.
JPMorgan analysts led by Nikolaos Panigirtzoglou said Ethereum’s volume share of NFT trading has dropped to around 80% from 95% at the start of the previous year, driven by a number of factors.
The drop is attributed to congestion, and high gas fees have been driving NFT applications to move away to other blockchains, specifically applications built for decentralized finance.
Panigirtzoglou noted that Ethereum’s valuation could be hit should the drop in its NFT share continue, with traders becoming increasingly frustrated with the high fees on the network.
Ethereum charges some $80 for every purchase made on its network.