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ETH faces competition from other blockchains, the price is overestimated, say JPMorgan analysts

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Analysts at the US multinational investment bank and holding company JPMorgan Chase & Co. believe that the Ethereum (ETH) price is currentlyoverestimated. According to Business Insider, the price of ETH should be approximately $ 1,500, which is nearly 50% below the current price..

The price of ETH is overestimated

Thanks to Ethereum, the age of smart contracts built on a blockchain was born. However, following pioneering work, hundreds of equally functional open-source blockchains have been launched, some of which are in vast competition with Ethereum. For example, the team of analysts led by Nikolaos Panigirtzogla mentioned the growing competition, especially the duo Solana and Cardano.

Analysts said they calculated the price based on various factors, including the number of miners and the expected level of adoption.

“If we look at the hashrate and the number of unique addresses to try to understand the value of ETH, we’ve gotten over $ 1,500,” Nikolaos said. “The current price expresses an exponential increase in usage and traffic that may not take place. “

ETH maintains impressive growth throughout a number of price corrections. 

As the acceptance rate in the ETH blockchain grew, so did the network’s problems. In particular, the network began to face congestion, which in turn led to very high charges being levied on users performing transactions on the network.

Ethereum killers?

The emergence of a number of blockchain networks was primarily focused on providing an alternative solution to the problems of the ETH network. From the Binance Smart Chain to Polkadot and Solana, they all promised to be the killer of Ethereum, but reality shows something else. Although many have managed to obtain part of Ethereum’s capitalization through lower transaction costs, many still face scalability issues.

Many protocols have proposed various technologies to solve this problem, however, as the blockchain ecosystem enters the mainstream, these solutions have proved insufficient.

The ETH Foundation has begun developing a more scalable Proof-of-Stake (PoS) protocol called ETH 2.0. With plans to move the existing Proof-of-Work model to this new blockchain infrastructure, the team believes that all scalability issues will be addressed in a sustainable manner.

Jack O’Holleran, CEO of Skale Labs, noted that ETH is still ready to be the dominant DeFi blockchain for the foreseeable future.

“The vast majority of smart contract developers build in the ETH ecosystem. Although significant partnerships have been announced on other blockchains, we still see that the vast majority work here. ”

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