Analysts at JPMorgan said Ethereum may continue to face "fierce competition" from rival blockchains, according to online reports. Analysts said Ethereum's share of the total market cap of cryptocurrencies has now fallen to its lowest level in four years, highlighting the growing pressure from competitors. Analysts point to two main reasons why Ethereum is underperforming: increasing competition from blockchains such as Solana and the Layer 2 network, which offer lower fees and greater scalability, and Ethereum lacks a strong narrative compared to Bitcoin's positioning as a store of value. Even after blobs were introduced in Ethereum's Dencun upgrade to reduce costs and improve scalability, activities are increasingly migrating from Ethereum's main network to the Layer 2 network, weakening the underlying chain. Increased competition is also prompting top decentralized applications to migrate to their own application-specific chains for better performance and lower costs. As one of Ethereum's largest gas consumers, Uniswap's exit could reduce Ethereum's fee revenue and increase the risk of network inflation, as fewer transactions means less token consumption.