JPMorgan: Ethereum's DeFi Supremacy Weakening in 2022?

Is Ethereum's reign in the Decentralized Finance (DeFi) world coming to an end? JPMorgan has issued a warning, suggesting Ethereum's dominance may be under threat. While the majority of decentralized finance (DeFi) is still happening on Ethereum, banking giant JPMorgan says this might not be a permanent thing. In a note to investors, JPMorgan highlighted that Ethereum is already losing its rank in the Defi sphere to the up and coming competitors, and may lose further if it does not escalate the time Ethereum’s dominance of decentralized finance (DeFi) is at risk as the scaling of the network, which is needed to maintain its dominance, may arrive too late, JPMorgan said.

Ethereum's DeFi Market Share at Risk

Analyst Nikolaos Panigirtzoglou implied that the 70% market share, the network entails in DeFi, could take a major hit. JPMorgan says that the delay of sharding may make it difficult for Ethereum to compete with rival chains for DeFi market share in the future. Los analistas de JP Morgan creen que Ethereum está perdiendo terreno en el espacio de las DeFi. Según Nikolaos Panigirtzoglou, ETH está perdiendo dominancia en el ecosistema de las cryptocurrencies. Los analistas de JPMorgan han lanzado una advertencia sobre Ethereum: su dominio en el ecosistema de las criptomonedas está en riesgo. A medida que la competencia intensifies, other blockchains are vying for a piece of the DeFi pie.

Ethereum devs and Ether – Ethereum’s native token and the second-biggest cryptocurrency by market capitalization – finished 2025 with a price increase of nearly 220%. Nonetheless, At the beginning of 2025, Ethereum’s market position is under scrutiny. The race is on for DeFi dominance, and Ethereum's lead isn't guaranteed.