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JPMorgan Forecasts Ethereum Evades Security Label Despite Lido’s Decline



JPMorgan Forecasts Ethereum Evades Security Label Despite Lido's Decline

(CTN News) – A recent report by JPMorgan suggests Ethereum may escape the ‘security’ label due to the decline in Lido’s share of the market.

As JPMorgan points out, Lido’s market share has decreased recently, indicating Ethereum’s potential to escape the security classification as a result of its diminishing market share.

Considering the concerns previously raised by analysts, this shift poses a positive outlook for the future regulatory status of Ethereum.

JPMorgan Ethereum risks are reduced as the Lido share decreases

Earlier this year, JPMorgan expressed concern over platforms like Lido, citing potential risks of centralization with these platforms. Although Lido has lost some market share over the last few months, concerns regarding Ethereum being classified as a security have decreased due to Lido’s decline in market share.

JPMorgan emphasizes that a digital token’s regulatory classification will be influenced by the degree of network decentralization on the network. In this regard, the release of the “Hinman documents” by the SEC is a significant development, as it suggests that tokens that operate on sufficiently decentralized networks might be classified as non-security tokens.

A Dencun upgrade is on the way for Ethereum

Dencun’s recent update to JPMorgan Ethereum’s Layer 2 network stands as a positive development, as it significantly reduces the transaction costs for Ethereum’s Layer 2 networks, positioning Ethereum as one of the ultimate settlement layers for its ecosystem as a whole.

Amongst the upgrades on Ethereum’s roadmap in the near future is the Petra upgrade, which is expected to go live at the end of the year.

By introducing Verkle trees through Petra, Ethereum promises to be able to provide further enhancements to its digital asset ecosystem, demonstrating its commitment to innovation and growth through the use of digital assets.


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Salman Ahmad is a seasoned writer for CTN News, bringing a wealth of experience and expertise to the platform. With a knack for concise yet impactful storytelling, he crafts articles that captivate readers and provide valuable insights. Ahmad's writing style strikes a balance between casual and professional, making complex topics accessible without compromising depth.

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