Pantera Capital’s CIO: Ethereum Could Soon Be Behind 50% of All Financial Transactions

According to Joey Krug – Chief Investment Officer at digital asset investment firm Pantera Capital – Ethereum will continue to be superior to its rivals. Moreover, the exec believes Vitalik Buterin’s project could facilitate 50% of the global financial transactions in the next decade.

Ethereum Is Not Likely to Be Challenged By Competing Networks

In a recent interview for Bloomberg, Joey Krug – an early DeFi developer and CIO of Pantera Capital – predicted that Ethereum could continue developing to the point of becoming a dominant part of the world’s financial space. As such, it is possible that in the next 10-20 years, half of the global monetary transactions could involve the blockchain protocol:

“If you roll the clock 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.”

Over the last year, many so-called “ETH-killers” like Solana and Polkadot have gained traction. They also received large amounts of funding and public attention. However, Krug believes those competing networks will not become a significant threat to Ethereum’s dominance.

Critics of the second-largest blockchain project often claim that it has expensive fees and slow transaction speeds. At the same time, its current proof-of-work mechanism is viewed as energy-intensive and bad for the environment.

It is worth noting, though, that Ethereum is in the process of switching to a more sustainable mining model: proof-of-stake. The exec thinks the blockchain protocol will increase its supremacy in the cryptocurrency industry after this transition.

Pantera Capital is one of the earliest digital asset investment firms as, in 2013, it launched the first investment fund focused on Bitcoin in the United States. According to Krug, Ether – the native token of Ethereum’s network – sits among Pantera’s top three positions across funds.

JPMorgan Says Ethereum Is Losing its Dominance

Last week, analysts at the giant multinational investment bank, including the Managing Director – Nikolaos Panigirtzoglou – noted that Ethereum is gradually losing its dominance in the Decentralized Finance (DeFi) ecosystem. They opined that blockchain protocols such as Terra, Avalanche, and Solana emerged as strong competitors in 2021.

As a result, Ethereum’s supremacy in the space has decreased from nearly 100% at the beginning of the past year to around 65% at the end of it. Keeping in mind that the second-largest crypto project is expected to upgrade its network in 2023 could mean that its rivals might close the gap even more during the following 12 months, the experts concluded.