Pantera Capital’s co-Chief Investment Officer Joey Krug believes that Ethereum will play a central role in global finance in the next ten years. Krug made the comments in an interview with Bloomberg.
The co-Chief Investment Officer of hedge fund Pantera Capital, Joey Krug, in an interview with Bloomberg, said that Ethereum would be a dominant part of the financial space in the upcoming decade. Krug made a tentative bold prediction, saying that in the next ten years, 50% of global financial transactions might involve Ethereum.
He saw an optimistic future for the world’s number one network for smart contracts. Krug does not think the several competing networks, like Polkadot, Solana, and Cardano (though he did not name any specific one), would prove a major threat to Ethereum’s dominance. He said,
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.
Ethereum has been steadily becoming a hub for financial services, led by the pioneering niche of decentralized finance (DeFi). The latter has become a cornerstone of investment and financial growth, with several novel financial applications paving the way for wealth management and growth.
However, Ethereum has been subject to several technical obstacles that prevent it from growing even further. The network experienced high gas fees and long transaction times on occasion as more and more users hop on board.
Developers are working on scalability solutions, most notably ETH 2.0. This upgrade is undergoing a phased release that should see completion in 2023. Other solutions, like those provided by Polygon Network, are also effective and growing in implementation.
Ethereum scalability upgrades key to growth
There’s little doubt that scalability must be tackled for Ethereum to achieve Krug’s prediction. Ethereum gas fees continue to be a pain point for many investors. This continues despite the fact that NFTs and DeFi services have attracted more users than ever before.
While solutions by the likes of Polygon Network have proven effective, it is not yet widespread enough for it to achieve that level of global dominance that Krug alludes to. It will take a lot more of Ethereum to become a truly global platform.
However, the outlook is good, as many such initiatives are taking place. Investors can have some reassurance knowing that the next 12 or so months will see many upgrades.
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