JPMorgan sees more centralization in Ethereum after network upgrade
According to analysts, the fork produced by the upgrade could divide the community
22.09.2022 - 15:15
513
2 min
0
What’s new? Experts at financial holding company JPMorgan have reported “some concerns” that have emerged on the Ethereum network since the move to the Proof-of-Stake (PoS) consensus algorithm. According to analysts, the fork produced by the upgrade could divide the community. However, they noted that some exchanges and platforms have demonstrated support for the fork on the Proof-of-Work (PoW) algorithm. The report also indicated that about 19 former ETH mining pools are actively working on PoW. Experts also emphasized that the blockchain has become less decentralized, CoinDesk reports.
Information on the CoinDesk website
What else did the report say? JPMorgan analysts noted that the move to backwardation in the futures market is “manifestation of the shift towards more bearish sentiment in crypto markets in recent weeks.”
Backwardation is when the spot price of an asset is higher than in the futures market.
The report also indicated that from a mining perspective, Ethereum Classic (ETC) has been the main beneficiary of the upgrade, as its hashrate has increased several times, while other PoW blockchains compatible with graphics processing units (GPUs), such as Ravencoin (RVN) and Ergo (ERG), have also shown significant growth.
As of September 22 at 14:50 UTC, ETH is trading at $1279,59, having lost 4,69% in a day, according to Binance.
Earlier, JPMorgan noted a sharp decline in the use of cryptocurrencies for payments in the last six months. The bank still supports customers who want to pay in cryptocurrencies, but for now it remains a niche use case.
To learn how major crypto services hinder the decentralization of Ethereum, see GetBlock Magazine's article.
Useful material?
Telegram 
Twitter Technologies
Network fees will be integrated into the cost of swaps
Nov 22, 2024
Market
The company’s unrealized profits from investing in its first cryptocurrency approached $14 billion
Nov 19, 2024
Incidents
The search, the reason for which was not announced, took place a week after the election, the results of which Polymarket users predicted quite accurately
Nov 14, 2024
Market
Analysts point to the growing popularity of the first cryptocurrency as a safe haven asset
Nov 13, 2024
Market
The product will begin trading on the Swiss Exchange on November 19
Nov 12, 2024
Market
The company’s unrealized profits from investing in the first cryptocurrency approached $13 billion
Nov 12, 2024
Cryptocurrency rates
-
Bitcoin
$98 891
BTC
+0.06%
-
Ethereum
$3 343.48
ETH
-0.44%
-
BNB Smart Chain
$579.4
BSC
+1.23%
-
Ripple
$1.56
XRP
+14.03%
-
Dogecoin
$0.425164
DOGE
+7.72%
-
Cardano
$1.1
ADA
+25.44%
-
Stellar XLM
$0.438358
XLM
+56.24%
-
Bitcoin Cash
$545.94
BCH
+10.11%
-
Polkadot
$7.05
DOT
+14.19%
-
Litecoin
$100.92
LTC
+11.92%