According to Joy 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 could facilitate 50% of global financial transactions over the next decade.
Ethereum unlikely to be challenged by competing networks
In a recent interview for Bloomberg, Joy Krug – an early DeFi developer and CIO of Pantera Capital – predicted that Ethereum could continue to grow to the point of becoming a dominant part of the world’s financial space. Therefore, it is possible that in the next 10-20 years, half of the global monetary transactions may involve the blockchain protocol:
“If you turn the clock back 10 to 20 years, a very large percentage of the world’s financial transactions, perhaps even north of 50%, will in some way, shape or form touch Ethereum.”
Over the past year, several so-called “ETH-killers” such as Solana and Polkadot have gained traction. He also got huge amount of money and public attention. However, Krug believes that those competing networks will not pose 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. Also, its current proof-of-work mechanism is seen as energy-intensive and bad for the environment.
However, it is worth noting that Ethereum is in the process of switching to a more sustainable mining model: Proof-of-Stake. The executive thinks that this transition will lead to the blockchain protocol increasing its dominance in the cryptocurrency industry.
Pantera Capital is one of the earliest digital asset investment firms since, in 2013, it launched the first investment fund focused on bitcoin in the United States. According to Krug, ether – the native token of Ethereum’s network – is one of Pantera’s top three positions among all funds.
JPMorgan Says Ethereum Is Losing Its Dominance
Last week, analysts at the giant multinational investment bank, including its managing director – Nikolaos Panigirtzoglu – said that Ethereum is slowly losing its dominance in the decentralized finance (DeFi) ecosystem. He believes that blockchain protocols such as Terra, Avalanche and Solana will emerge as strong competitors in 2021.
As a result, Ethereum’s dominance in the space has dropped from almost 100% at the beginning of last year to about 65% at the end of it. Considering that the second largest crypto project is expected to upgrade its network in 2023, this could mean that its rivals may close the gap even further during the next 12 months, experts conclude. Removed.
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