Joey Krug, co-chief investment officer at Pantera Capital, believes Ethereum will play a pivotal role in global finance over the next ten years. Mr Krug issued the forecast in an interview with Bloomberg.
In an interview with Bloomberg, co-chief investment officer of hedge fund Pantera Capital, Joey Krug, asserted that Ethereum will be a dominant player in the financial sector over the next decade. Mr Krug even made a bold prediction: “Ethereum could enter 50% of global financial transactions over the next ten years,” he said.
Joey Krug predicted a bright future for the world’s No.1 smart contract network. Indeed, the specialist believes that the many competing networks of Ethereum, in particular Polkadot, Solana and Cardano (although it has not designated specific blockchains), will not succeed in dethroning it. So he said:
“If you turn the clock forward 10 to 20 years, a very large percentage, maybe even close to 50%, of global financial transactions will involve Ethereum in one way or another.”
Ethereum has gradually become a financial services hub, boosted by the pioneer sector of decentralized finance (DeFi). The latter has become a cornerstone of investment and financial growth. Today, there are many new decentralized finance applications that significantly contribute to wealth management and growth.
However, the ETH blockchain faces several technical hurdles that are slowing its growth. In fact, the increase in the number of users has caused transaction costs to skyrocket while slowing down network throughput.
Currently, Ethereum developers are working on scaling solutions, including ETH 2.0. The rollout of this update will be gradual and should be completed in 2023. Other solutions, such as those provided by Polygon, are also effective and increasingly used.
Scaling Ethereum Is Key To Its Growth
For Mr. Krug’s predictions to come to fruition, the network must make scaling a priority. Indeed, Ethereum’s excessively high gas costs scare away many investors. This continues despite the fact that NFT and DeFi services have attracted more users than ever before.
Certainly, solutions like Polygon Network have proven to be effective. But, they are not yet widespread enough to allow Ethereum to reach the level of world domination that Krug is alluding to. More effort must therefore be made for Ethereum to become a truly global platform.
However, the outlook is good, as many such projects are underway. Investors also seem reassured that the next 12 months will bring several improvements to the network.
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