Change so that nothing changes – The Ethereum network has met with growing enthusiasm over the past few years. This was mainly initiated by the evolution of the decentralized finance ecosystem. Thus, Ethereum hosts a financial system off the beaten path, which could well become a cornerstone of global finance.
“50% of global financial transactions could involve Ethereum”
Pantera Capital is an American investment fund that has made cryptocurrencies its specialization. Launched in 2013, it has witnessed the evolution of the crypto ecosystem and the multiplication of projects. After acquiring valuable BTC, the fund invested in major companies in the industry. We find in particular Circle, Bitstamp or Starkware.
However, despite the multitude of existing projects, Ethereum seems to retain a place of choice in Pantera Capital’s portfolio.
At least that’s the opinion of Joey Krug, co-head of investments for the firm. In interview given to our colleagues from Bloomberg, the latter said he sees no serious competitor to Ethereum.
Moreover, Krug even went so far as to predict that Ethereum would become a central part of global finance within the next 10 to 20 years.
“If you move the clock forward 10 to 20 years, a very large percentage, maybe even more than 50%, of global financial transactions, one way or another, will hit Ethereum..”
For its part, Ether, the native token of Ethereum, is one of the main positions of the investment fund. Thus, ETH arrives in the top three of the most important positions of Pantera Capital, according to Krug.
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Too many compromises on decentralization?
For several years, in turn, new blockchains have emerged and proclaimed themselves “Ethereum Killer”. However, none of them have so far managed to reach the scale of Ethereum.
Although attractive, these chains have according to Krug “compromises too much on decentralization, which Ethereum hasn’t”. Thus, their excessive centralization would not make them ideal solutions for carrying “the new layer of global financial settlement”.
Obviously, not all of the players in the ecosystem share this opinion. Thus, David Grider, head of research at Grayscale, a competing fund, believes that there will be no single winner.
“I don’t think it’s a winner-take-all market. Ethereum has this headend effect. It has this large community, but others have emerged that fill different voids in the market. »
In the meantime, these other blockchains are the joy of many investors whose portfolio does not allow them to rub shoulders with Ethereum and its insane transaction fees.
The Pantera Capital fund itself is not so adamant about its investments. Indeed, we find in its portfolio projects such as Polkadot, Terra or Cosmos, which can however be presented as “Ethereum Killer”.
Either way, a lot of improvements are needed to make Ethereum an underlying layer of the global financial system. For this, the network will first have to finalize the major update that represents Ethereum 2.0. This should take a new turn in the first half of 2022, a testnet for the transition to Proof of Stake having been launched last December.
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