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Amid the growing number of Ethereum competitors, Pantera Capital CIO comes to the defense saying that no other blockchain is well suited to become the global financial layer apart from Ethereum.
Well, many in the crypto world have been talking a lot about the growing dominance of other Layer-1 Ethereum competitors and a threat ahead for the world’s second-largest crypto platform. Busting all the stories, Pantera Capital co-chief investment officer Joey Krug said that Ethereum is far ahead of its competitors. And despite the current growing competition, anyone is unlikely to threaten the dominance of the world’s most-used blockchain network.
Pantera Capital CIO Speaks on Ethereum
These comments from Joey Krug came during his recent interview with Bloomberg. Krug further stated that Ethereum would be a dominant part of the global financial ecosystem over the next decade. Making a bold prediction, Krug added that in the next ten years, 50% of the global financial transactions will happen over Ethereum.
“If you roll the clock forward 10 to 20 years, a very sizable percent, maybe even north of 50%, of the world’s financial transactions in some way, shape or form will touch Ethereum,” he said.
Thus, Krug is clearly quite optimistic for the world’s number one network for smart contracts. Thus, he believes that competing networks like Solana, Polkadot, and Cardano are no threat to Ethereum.
However, critics of Ethereum say that the network has been losing ground to competitors amid slow network development. Other networks have seen tremendous growth over the last year or two.
Ethereum – The Hub of Financial Services
While Ethereum has been facing strong competition, it has been the first-of-its-kind network to become a hub for decentralized financial services. The popularity of Ethereum has been skyrocketed with the growth of Decentralized Finance (DeFi).
Besides, the blockchain has also been host to several novel financial applications. But with many such applications built on Ethereum, Ethereum blockchain is currently facing the issue of congestion. As a result, transaction delay on Ethereum is increasing swiftly along with the network gas fee skyrocketing.
Ethereum developers have been already working on a transition to Proof-of-Stake (PoS) Ethereum 2.0. However, the transition doesn’t seem to be happening anytime before 2023.
At the same time, Ethereum Layer-2 solutions are gaining traction as well. For e.g. platforms like the Polygon Network have gained immense popularity recently due to their ultra-low gas fee. On the other hand, other Layer-1s like Solana are also addressing these crucial issues at hand.
However, Ethereum competitors have been facing other technical challenges. For e.g. the Solana blockchain has faced six times downtime over the last year. Krug believes that there are too-many trade-offs that Ethereum competitors are making on the decentralization side which Ethereum is not making.