JP Morgan Chase: Ethereum's Domination Over DeFi Will End! ETH developer countered

According to a report released yesterday by Bloomberg, analysts at JPorgan Chase and Nikolaos Panigirtzoglou on Wednesday predicted in a statement that Ethereum could lose its key role in the financial services industry. Challenge).

Partitioning technology, the most important anticipation of the Ethereum 2.0 update, is expected to improve performance and lower operating costs, but Panigirtzoglou believes the joint venture printing network in DeFi will continue until the arrival of partitioning in 2023. reduced.

Ethereum's DeFi includes a 30% loss.

According to data from DefiLlama, Ethereum's share jumped over 97% in January of last year, but due to the rapid growth of competitors such as Terra and Binance Smart Chain, the share of total stable rates ( TVL) in the DeFi protocol has now shrunk far. 30x I do. %.

Currently, DeFi's total revenue is estimated at $ 241.3 billion, and the top five state-owned companies are Ethereum (63%), BSC (7%), Terra (7%), Avalanche (5%) and Solana (4%). .

Ethereum's growth is lower than that of the public competition chain.

Panigirtzoglou said that Ethereum struggles with high operating costs, which is why users in the DeFi community often switch to cheaper alternatives. Currently, competitors such as Terra, Binance Smart Chain, Avalanche and Solana receive large sums of money and use incentives to promote ecosystem applications. of users never come back.

According to data from CoinGecko, ETH prices rose 280% last year, Solana rose 7,000%, Avalanche rose 2,200% and Terra was 900%, lower than its competitors.

Ethereum Developer Rebuttal

According to "Decryption," referring to statements made by analysts at JPMorgan Chase, some Ethereum developers and partners have said the statement has been made in the past.

Tim Beiko, Chief Ethereum Developer, said, “It sounds like a bad omen,” now that the competition has worked, the sharding process can save a lot of money and resources. The contents have proven to be safe.

Tegan Kline, developer of the Ethereum The Graph indexing protocol, said, “After all, the security of the financial chain is critical and Ethereum remains the most secure for the future.

According to the data, Ethereum is still the most used channel, with 66.7% of the requests on the 26 networks sponsored by The Graph being Ethereum. Kline said DeFi functions on other blockchains are typically driven by token support, and we can see more DeFi on Ethereum if Ethereum Layer 2 is also supported.

Pooja Ranjan, director of Ethereum Cat Herders' distribution division, also said that while the expansion is big, other issues are bigger. For example, Ethereum developers are always concerned about security and making sure that there is no downtime on the network. He cites the Solana network as an example, which was closed for almost 18 hours last September. Ranjan concludes: He doesn't believe DeFi exists because of Ethereum, as long as Ethereum exists DeFi must be the powerful engine of fusion.