Ethereum Faces Growing Competition Amid Market Dynamics

According to BlockBeats, on February 6, analysts from JPMorgan highlighted that Ethereum is experiencing ongoing pressure from competitors. The report indicates that despite an overall rise in the cryptocurrency market, Ethereum's performance has lagged behind Bitcoin and other tokens, with its market capitalization share dropping to a four-year low. The analysts attribute this trend to two main factors: the competitive pressure from public chains like Solana and layer-2 networks offering lower fees and higher scalability, and Ethereum's lack of a strong narrative compared to Bitcoin's positioning as a store of value. Even after Ethereum's Dencun upgrade, which introduced blobs to reduce fees and enhance scalability, activity has increasingly shifted from Ethereum's main network to layer-2 networks, thereby weakening the base chain.