Ethereum (ETH) isn’t likely to be threatened by other smart contract platforms, according to Joey Krug, the co-chief investment officer of digital asset investment firm Pantera Capital.
In a new interview, Krug says that as long as ETH can successfully transition to proof-of-stake, other smart contract platforms will likely have to rely on Ethereum as a base in the future.
“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.”
A highly anticipated Ethereum upgrade, known colloquially as “The Merge,” aims to replace the network’s current proof-of-work consensus mechanism with a more eco-friendly, secure and efficient proof-of-stake model. The Merge is slated to take place in Q1 or Q2 of 2022.
Krug also notes that ETH competitors can have their own downsides, like security concerns.
“There’s too many trade-offs other chains are making that Ethereum is not making on the decentralization side that are pretty important. I don’t know if they’re best suited to be the new global financial settlement layer.”
Ethereum is trading at $3,021.42 at time of writing, down more than 26% from where it was priced one month ago.
Meanwhile, David Grider, head of research at Grayscale Investments, tells Bloomberg that he thinks multiple smart contract platforms can succeed in the space.
“I don’t think it’s this winner-take-all type of market.
Ethereum has this lead-of-a-network effect. It has this large community, but other ones have emerged that fill different market voids.”Don't Miss a Beat – Subscribe to get crypto email alerts delivered directly to your inbox
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