With the market share of Ethereum's largest liquidity staking protocol Lido declining, JPMorgan analysts say ETH can avoid being classified as a security in the future.

JPMorgan analysts led by Nikolaos Panigirtzoglou wrote in a report Wednesday:

“Lido's market share has fallen from about a third a year ago to about a quarter now. This will reduce concerns about the centralization of the Ethereum network, increasing the odds of Ethereum avoiding the securities label in the future.”

In October last year, JPMorgan analysts expressed concerns that platforms like Lido, despite being decentralized liquidity staking protocols, “remain highly centralized” and pose risks. Potential risks for Ethereum. However, these concerns appear to have subsided as Lido's market share has declined.

Analysts point out that decentralization plays a decisive role in classifying digital tokens as securities, as highlighted in the “Hinman document” of the US Securities and Exchange Commission ( SEC) last June. At the time, SEC officials noted that tokens that operate on a “sufficiently decentralized” network may not be classified as securities because they do not meet Howey Test criteria.

After the Hinman documents became public last year, JPMorgan analysts said U.S. officials could create a new “other category” to accommodate Ethereum, thereby avoiding classification as a security. while still ensuring investor protection. SEC Chairman Gary Gensler has consistently refused to comment on whether Ethereum is a security.

Another good news for Ethereum

Ethereum's recent Dencun upgrade has significantly reduced transaction costs for Layer 2 networks, increasing the number of transactions and total value locked. According to JPMorgan analysts, this development helps position Ethereum as the “ultimate payment layer for the Ethereum ecosystem.”

“Through the use of Ethereum Layer 2 and emerging Layer 3 solutions, developers can now settle transactions within the Ethereum ecosystem instead of turning to alternative Layer 1 chains for deployment. their applications”.

After Dencun, the next major upgrade on Ethereum's roadmap is Petra, expected to launch later this year. According to analysts, Petra will add Verkle trees to save space and speed up block verification by deleting old blocks, bringing further benefits to Ethereum.

https://tapchibitcoin.io/ethereum-co-the-tranh-bi-phan-loai-la-chung-khoan-khi-thi-phan-cua-lido-suy-giam.html