Since Ethereum launched in 2015, the project has formed a reputation as the most well-established, open-ended decentralized software platform.
Joey Krug, Pantera Capital’s co-chief investment officer, has predicted that Ethereum will play a central role in global finance in the next decade.
Despite not originally being created for the express purpose of processing transactions, Krug notes that Ethereum has steadily improved its network to the point of becoming a quality hub for financial services, leading the charge in pioneering the niche of decentralized finance, or DeFi.
With the growth of DeFi protocols, the hedge fund’s co-chief investment officer believes that decentralized finance will become the linchpin of the investment and financial development sectors in the future.
Speaking on the subject, Joey Krug explained, “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.”
Despite Ethereum being one of the least scalable blockchain networks on the market (having needed to rely on layer-2 solutions like Polygon), Krug does not believe that any competing networks are truly capable of being a major threat to Ethereum’s dominance.
On the Flipside
- Representatives of investment bank, JP Morgan have opined that, on the the contrary, Ethereum could well lose its DeFi dominance to up and coming chains.
The key to the longevity of Ethereum’s reign lies in solving its scalability crisis. With Ethereum drawing ever closer to ETH 2.0, which would mark its transition to the proof-of-stake mechanism, developers are working hard to make the network’s high gas fees and lack of scalability a thing of the past.
Why You Should Care
With such grand predictions for the future of Ethereum, getting ETH 2.0 right would doubtless be significant in establishing the network’s dominance over the cryptoverse.