5.3 C
December 5, 2022
Image default

Ethereum behind 50% of all financial transactions

Competing blockchain projects will not outperform Ethereum, while the latter could play a significant role in the future global currency space.

According to Joey Krug, chief investment officer at digital asset investment firm Pantera Capital, Ethereum will continue to outperform its rivals. In addition, the executive believes that Vitalik Buterin’s project can facilitate 50% of global financial transactions in the next decade.

Ethereum will likely not be challenged by competing networks

In a interview A recent report to Bloomberg, Joey Krug, an early DeFi developer and CIO at Pantera Capital, predicted that Ethereum could continue to develop to the point of becoming a dominant part of the global financial space. As such, it is possible that in the next 10-20 years, half of global currency transactions could involve the blockchain protocol:

“If you roll the clock back 10 to 20 years, a very considerable percentage, perhaps even more than 50%, of the world’s financial transactions will somehow touch Ethereum.”

Last year, many of the so-called “ETH killers”, like Solana and Polkadot, gained traction. They also received large amounts of funding and public attention. However, Krug believes that these competing networks will not become a significant threat to Ethereum’s dominance.

Critics of the second largest blockchain project often claim that it has expensive fees and slow transaction speeds. At the same time, its current proof-of-work mechanism is seen as energy intensive and bad for the environment.

It is worth noting, however, that Ethereum is in the process of shifting to a more sustainable mining model: proof of stake. The executive thinks that the blockchain protocol will increase its supremacy in the cryptocurrency sector after this transition.

Pantera Capital is one of the first digital asset investment companies, as in 2013 it launched the first Bitcoin-focused investment fund in the United States. According to Krug, Ether, the native token of the Ethereum network, is among Pantera’s top three positions across all funds.

JPMorgan says Ethereum is losing its dominance

Last week, analysts at the giant multinational investment bank, including managing director Nikolaos Panigirtzoglou, noted that Ethereum is gradually losing its dominance in the Decentralized Finance (DeFi) ecosystem. They opined that blockchain protocols like Terra, Avalanche and Solana have emerged as strong competitors in 2021.

As a result, Ethereum’s supremacy in the space has declined from nearly 100% at the beginning of last year to around 65% at the end. Bearing in mind that the second largest cryptocurrency project is due to upgrade its network in 2023, it could mean that its rivals could close the gap even further over the next 12 months, the experts concluded.

Source: CryptoPotato

Related posts

LINK rises 25% and hits new ATH as Bitcoin recovers $ 5,000

Anupreet Kaur

Uniswap Token (UNI) values ​​300% after listings on Coinbase and Binance

Anupreet Kaur

Ripple set to 13% high and HUH Token ready to 60%

Anupreet Kaur

Leave a Comment