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Ethereum Merge may lessen usage for other chains, says Nansen CEO: KBW 2022

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Cointelegraph’s Brian Newar spoke with Alex Svanevik, the CEO of blockchain knowledge agency Nansen on the Korea Blockchain Week (KBW) 2022  held in Seoul and mentioned matters just like the upcoming Ethereum (ETH) Merge and the way it will have an effect on different blockchains. 

Based on Svanevik, the business witnessed a spillover impact within the final bull run. He stated that in buying and selling nonfungible tokens (NFTs), newcomers within the blockchain area did not wish to pay hefty transaction charges of as much as $100 to buy NFTs within the Ethereum community. The Nansen CEO famous that this demand for NFTs spilled over to different blockchains the place the charges to buy NFTs weren’t as excessive as in Ethereum. He defined that:

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“It will be fascinating to see to what extent these different ones can proceed to have demand if a number of it was pushed by that spillover impact. You might need quite a bit much less utilization.”

When requested what he thinks will occur to another blockchains after the merge, the chief stated that many could die off. “Many chains will most likely develop into a ghost city or ghost chains. However I do suppose that some chains will discover their very own niches,” stated Svanevik.

Associated: Web2 adoption key to Metaverse success, Klaytn Foundation — KBW 2022

Regardless of this, Svanevik believes that there are some chains on the market which were capable of bootstrap their very own ecosystems. Citing examples, the Nansen CEO pointed to Solana (SOL), Polygon (MATIC) and Avalanche (AVAX). Nevertheless, Svanevik famous that there are extra chains on the market which have the infrastructure that makes it simple for builders to come back into their ecosystems. He stated that:

“I feel some chains have managed to succeed in escape velocity the place there’s sufficient infrastructure in order that they will proceed to develop extra tasks.”

Svanevik additionally in contrast blockchains to cities. Based on the chief, simply as cities want hospitals, legislation corporations and the media, blockchains want their decentralized exchanges (DEX), marketplaces, blockchain explorers and extra.

In the identical occasion, 1inch co-founder Sergej Kunz advised Cointelegraph that the decentralized finance (DeFi) market has a number of room to grow in South Korea. Regardless of this, Kunz famous that there are challenges and limitations to entry, together with the lack of know-how in utilizing crypto wallets and understanding of DeFi.