Whereas the SEC sought to qualify Ethereum as a safety, JP Morgan analysts argued that Lido’s declining market share might shield Ethereum from being categorised as a safety.
Based on The Block, JP Morgan analysts additionally famous that along with the declining market share of the most important liquid staking protocol Lido, Ethereum’s newest Dencun replace is one other optimistic improvement for the ETH community and ecosystem.
JP Morgan analysts led by Nikolaos Panigirtzoglou acknowledged the next within the report:
“Lido’s share of Ethereum has fallen from a few third a 12 months in the past to a few quarter now.
“This could cut back issues about focus on the Ethereum community, thus rising the probabilities of Ethereum qualifying as a safety sooner or later.”
Moreover, evaluating the results of the Dencun improve, analysts famous that the Dencun improve considerably reduces transaction prices for Ethereum Layer 2 networks and will increase the variety of transactions and whole worth locked.
Analysts lately acknowledged that the subsequent main improve in Ethereum’s roadmap is Petra, which is deliberate to be carried out later this 12 months, and stated that this improve will deliver extra advantages to Ethereum.
*This isn’t funding recommendation.
