One of the most interesting issues for the coming year in crypto certainly has to do with whether or not Ethereum’s blockchain supremacy will be maintained, as it faces increasingly fierce competition and the need to reduce transaction costs.
Financial transactions on Ethereum
According to some experts, the more sustainable and cheaper blockchains such as Solana, Cardano and Avalanche, which saw their prices soar in 2021, could in 2022 even surpass the more expensive and less scalable Ethereum.
But that certainly doesn’t seem to be the view of Joey Krug, co-chief financial officer of Pantera Capital, the first US hedge fund specializing in blockchain and cryptocurrencies, which continues to have full confidence in Ethereum and its predominant role in the field of blockchain networks.
Krug told Bloomberg two days ago:
“There’s too many trade-offs other chains are making that Ethereum is not making on the decentralization side that are pretty important”.
Krug even launches into a prediction that might seem unbelievable, arguing that in one or two decades it’s likely that a large proportion of the world’s financial transactions could go through Ethereum’s blockchain in some way.
“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”.
Towards Proof of Stake
Krug also spoke about the key role of the blockchain founded by Buterin in the development of DeFi.
“I believe competitors will eventually rely on Ethereum as a base, assuming that the blockchain successfully switches to proof-of-stake”.
This new update, which should be operational by the second half of the year, could finally solve Ethereum’s many problems related to the high transaction costs of its network, which have forced many DeFi developers and startups to abandon it for the cheaper Solana and Polkadot.
In August, the CEO of the Pantera Capital fund, Dan Morehead, predicted that the next update would probably help Ether overtake Bitcoin and become the world’s largest cryptocurrency.
Morehead is convinced that the new update will make the blockchain much more scalable and sustainable, increasing its adoption and consequently the price of the Ether currency, which could in a few years surpass Bitcoin.
At the same time, however, the CEO of the fund with $4.7 billion in assets under management remains very positive about Bitcoin’s future price, which he says could exceed $120,000 by the end of 2022.