Home Ethereum Ethereum Merge Could Reduce Use of Other Chains, Nansen CEO Says: KBW 2022

Ethereum Merge Could Reduce Use of Other Chains, Nansen CEO Says: KBW 2022

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Ethereum Merge Could Reduce Use of Other Chains, Nansen CEO Says: KBW 2022

Cointelegraph’s Brian Newar spoke with Alex Svanevik, the CEO of blockchain data company Nansen at Korean Blockchain Week (KBW) 2022 held in Seoul and discussed topics like the upcoming Ethereum (HEYMerge and how it will affect other blockchains.

According to Svanevik, the industry witnessed a ripple effect in the last bull run. He said that in trade non-fungible tokens (NFT), newcomers to the blockchain space did not want to pay high transaction fees of up to $100 to buy NFTs in the Ethereum network. The CEO of Nansen noted that this demand for NFTs spread to other blockchains where the fees for buying NFTs were not as high as in Ethereum. He explained that:

“It will be interesting to see to what extent those others can continue to have demand if a lot of it was driven by this ripple effect. You could have a lot less use.

When asked what he thought would happen to some other blockchains after the merger, the exec said many could die. “Many channels will likely become a ghost town or ghost channels. But I think some channels will find their own niches,” Svanevik said.

Related: Web2 adoption is key to Metaverse success, Klaytn Foundation – KBW 2022

Despite this, Svanevik believes there are channels that have been able to start their own ecosystems. Citing examples, the CEO of Nansen pointed to Solana (FLOOR), Polygon (MATIC) and Avalanche (AVAX). However, Svanevik noted that there are more channels with the infrastructure that allows developers to easily access their ecosystems. He said that:

“I think some channels have managed to reach a trailing speed where there is enough infrastructure to be able to continue to develop more projects.”

Svanevik also compared blockchains to cities. According to the executive, just as cities need hospitals, law firms and the media, blockchains need their decentralized exchanges (DEX)marketplaces, blockchain explorers and more.

In the same event, 1inch co-founder Sergej Kunz told Cointelegraph that the decentralized finance (DeFi) the market has a lot of place to grow up in south korea. Despite this, Kunz noted that there are challenges and barriers to entry, including lack of knowledge in using crypto wallets and understanding DeFi.