Just like the bloodbath seen across the rest of the crypto-market, Ethereum has also lost over 17% of its value in a week. At the time of writing, the coin was hovering close to the $3,165-level.
Meanwhile, analyst Peter Brandt said in a tweet that ETH appeared to be in a downtrend as it was “too complicated, expensive and awkward a platform.”
And, not just that, he added that ETH’s bear trend against SOL is completely warranted.
Needless to say, many in the Ethereum community disagreed with the same. However, a Twitter user with the pseudo name Satoshi Friends presented the opposite view.
That being said, it is noteworthy that SOL has witnessed three congestion incidents over a short period of time. In fact, soon after each incident, the community started speculating if the network has become vulnerable to another DDoS attack.
Now, Solana is the sixth crypto in the market, down from the fifth place it occupied last week, after falling 21.5% in the same period.
But, that doesn’t make Ethereum as a DeFi platform invincible. In fact, JPMorgan Chase & Co. recently predicted its falling dominance over competitors in a note. Meanwhile, with ETH 2.0 on the way, the project is also in a critical phase as per the bank. However, scaling delays “which is necessary for the Ethereum network to maintain its dominance” might further negatively impact the network. A team of analysts led by Nikolaos Panigirtzoglou said,
“An optimistic view of Ethereum’s dominance is threatened.”
As expected, so far Ethereum continues to demand over 60% share in the DeFi space. But, that share was close to 70% just a few months back. Meanwhile, platforms like Terra, Binance Smart Chain, Avalanche, and Solana have moved up the ladder.
In another 2022 prediction, Bloomberg Intelligence analyst Mike McGlone said:
“We expect the sustainable trio – Bitcoin, Ethereum and crypto-dollars – to maintain their dominance. The best newcomers of 2021 – Binance Coin and Solana – could end the trend of temporary visitors in the top five. “
In terms of price levels, McGlone sees Ethereum heading towards breaching the $5,000-resistance.
BitMEX co-founder Arthur Hayes has another interesting take when it comes to Ethereum and tokens tied to the Layer 1 chain. He said,
“Bitcoin and Ethereum both have some pretty glaring shortcomings, and if another crypto can supplant either one, its value will naturally explode.”
He concluded by saying, “Monero is to Bitcoin what Solana is to Ethereum. “
