According to PANews, a recent research report released by JPMorgan on Wednesday suggests that the share of Ethereum staked in the platform Lido is continually decreasing. This trend is expected to alleviate concerns about the centralization of the Ethereum network and increase the likelihood that Ethereum (ETH) will not be classified as a security in the future.
The report, led by analyst team Nikolaos Panigirtzoglou, states, 'The share of Ethereum staked in Lido has dropped from about a third a year ago to about a quarter now.' The Hinman document, released in June last year, revealed the role of network decentralization when the Securities and Exchange Commission (SEC) considers whether to classify digital tokens as securities. Officials from the SEC have previously acknowledged that tokens on sufficiently decentralized networks are no longer securities, as there is no controlling group in the sense of Howey.
The report further added that the recent Dencun upgrade should 'help Ethereum increase its dominance over alternative Layer1 blockchains and regain the market share lost due to previous scalability issues.'