BitMEX co-founder Arthur Hayes says leading Ethereum (ETH) competitors probably don’t stand a chance of taking out the leading smart contract platform.
In a new interview with Crypto Banter, Hayes says some of the leading layer-1 Ethereum rivals could present good trades next cycle, but don’t have long-term potential to overtake ETH in terms of market cap.
“It would make sense to allocate to one or more of these things at the bottom, because they’re going to go up fast. Now, I don’t think anything comes close to competing with Ethereum. It’s not all based on transactions per second or blah blah blah the other stuff. It’s developer talent.
Ethereum has a few thousand developers. The next blockchain might have a few hundred, and that’s all that matters. The developers create this ecosystem. They build the applications.”
Using Solana as an example, Hayes says SOL faces the challenge of finding a new narrative for the next bull market cycle. According to the crypto veteran, hype around transactions per second and lower fees can only work for so long.
“If you think about it, every other layer-1 has teams basically copying and pasting everything that’s been created on Ethereum first. Which is fine, getting into Solana when it’s a few cents at out at $200, great f***ing trade.
But it’s a little bit less of a trade now at $30. Do they actually have something to give to the market in the next cycle? What are they going to bring to the market in the next cycle? Because if it’s just ‘Oh Ethereum is slow. It’s processing so many transactions. Gas fees are high. We’re faster because of some fancy math we wrote down on a piece of paper, and our testnet is real fast…’
That works the first time. [It] doesn’t work the second time…
If the technical situation on the price chart looks good, then I would go into some of them but in my deep understanding, I don’t think any of them can beat Ethereum as of yet because they don’t have the mindshare of the developers.”
At time of writing, Ethereum is swapping hands for $1,310, flat on the day.
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