The pro-crypto Wall Street giant, JPMorgan took a rather surprising stance against the dominating blockchain, Ethereum and its coin, Ether ($ETH). 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 taken for scalability upgrades. According to Bloomberg, JPMorgan noted that due to the late launch of the Sharding feature, which is \u201cmost critical\u201d\u00a0development for scaling the Ethereum network, it is possible that by the time Ethereum catches up to speed it would have already lost its dominance. \u201cIn other words, Ethereum is currently in an intense race to maintain its dominance in the application space with the outcome of that race far from given, in our opinion\u201d Bi-fold reason to Ethereum losing Defi dominance It is evident that there are two main reasons because of which Ethereum could potentially lose its dominance in the Defi sphere. First \u2013 the scalability issue and second would be an increased number of competitors with independent blockchains. As of now, blockchains process transactions one after the other. However, with Ethereum\u2019s Sharding feature \u2013 a scalability functionality in ETH 2.0, parallel processing will become possible, maintaining Ethereum\u2019s superiority. But, this upgrade is far from implementation, expected to arrive in 2023 although, Ethereum has already fell from its 100 percent market share in Defi, to a mere 70 percent, and is predicted to fall further if it does not prepone the Sharding feature implementation. Bloomberg quoted the note from\u00a0analysts led by Nikolaos Panigirtzoglou that mentioned \u201coptimistic view about Ethereum\u2019s dominance is at risk\u201d\u2026Scaling, \u201cwhich is necessary for the Ethereum network to maintain its dominance, might arrive too late.\u201d Panigirtzoglou added that another \u201crather problematic\u201d threat to Ethereum are market competitors with independent blockchains. These competitors are coming up with more accessible and cheaper innovations on their separate blockchains, instead of relying on Ethereum\u2019s Layer 1 network for their security. In lieu of these concerns, Ethereum should ideally push forward its ETH 2.0 launch to reclaim its throne. The post Can Ethereum lose its Defi dominance? JPMorgan believes so appeared first on CoinGape.