According to Joey Krug – chief investment officer of 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 Is Not Likely to Be Challenged By Competing Networks
In a recent interview for Bloomberg, Joey Krug – an early DeFi developer and CIO of Pantera Capital – predicted that Ethereum could continue developing to the point of becoming a dominant part of the world’s financial space. As such, it is possible that in the next 10-20 years, half of the global monetary transactions could involve the blockchain protocol:
“If you run the clock 10 to 20 years, a very large percentage, maybe even north of 50%, of the world’s financial transactions in one way or another will affect Ethereum.”
Over the last year, many so-called “ETH-killers” like Solana and Polkadot have gained traction. They also received large amounts of funding and public attention. However, Krug believes those competing networks will not become a significant threat to Ethereum’s dominance.
Critics of the second largest blockchain project often claim that it has high fees and slow transaction speeds. At the same time, its current proof of work mechanism is considered to be energy intensive and bad for the environment.
It is worth noting, though, that Ethereum is in the process of switching to a more sustainable mining model: proof-of-stake. The exec thinks the blockchain protocol will increase its supremacy in the cryptocurrency industry after this transition.
Pantera Capital is one of the first digital asset investment firms because 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 in Pantera’s top three positions in all funds.
JPMorgan Says Ethereum Is Losing its Dominance
Last week, analysts at the giant multinational investment bank, including the Managing Director – Nikolaos Panigirtzoglou – noted that Ethereum is gradually losing its dominance in the Decentralized Finance (DeFi) ecosystem. They opined that blockchain protocols such as Terra, Avalanche, and Solana emerged as strong competitors in 2021.
As a result, Ethereum’s supremacy in space has grown from nearly 100% at the start of last year to around 65% by the end of this year. Bearing in mind that the second largest crypto project set to upgrade its network in 2023 could mean rivals could close the gap even more over the next 12 months, experts concluded.
