While many speculate on “when” Ethereum will cede its dominance in the smart contract game, a major Hedge Fund predicts ETH will settle half the world’s transactions. Covered: Pantera Capital Long On ETH Pantera’s Crypto Focus Pantera Capital Long On ETH According to reports from Bloomberg, Pantera Capital, a large hedge fund and major player […] The post Hedge Fund: Half The World’s Transactions Will Be On Ethereum appeared first on CryptosRus.

Hedge Fund: Half The World’s Transactions Will Be On Ethereum

While many speculate on “when” Ethereum will cede its dominance in the smart contract game, a major Hedge Fund predicts ETH will settle half the world’s transactions.

Covered:

  • Pantera Capital Long On ETH
  • Pantera’s Crypto Focus

Pantera Capital Long On ETH

According to reports from Bloomberg, Pantera Capital, a large hedge fund and major player in the crypto industry revealed they are long ETH. In a recent interview, the chief investment officer at Pantera Joey Krug made the bull case for Ethereum.

Krug argues that even as an explosion in the growth of other L1’s continues, it is “unlikely to threaten the dominance” of Ethereum. “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.”

By ‘touch’, we can assume Krug means that transactions will be more or less settled on Ethereum, even if you, as the user, are engaging with a Layer-2 or something of the like. One reason for this is that Rollups actually pay to settle on Ethereum and use ETH.

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Pantera’s Crypto Focus

As you may have guessed, ETH makes up a major portion of Pantera’s portfolio. It is among their top three holdings, according to Krug. So while it is no surprise they would make the bull case for ETH, it is a surprise that Krug and Pantera are so bullish on Ethereum to the point of saying half of the worlds money will be settled on it.

With nearly 6 billion dollars in assets, Pantera is one of the top crypto-focused hedge funds in the world. While everyone else is hot on the “new Ethereum”, whether it’s Solana or Terra, Pantera is holding to the notion that the good old Ethereum will be the winner. Krug essentially asserts that every Layer 1 is actually vying to be a 2nd layer to Ethereum.

As you can see if the above image, most chains are, in fact, EVM compatible, and often times, chains do everything they can to retain “affinity” to Ethereum. Interestingly, while Terra is not EVM compatible, it is built with the Cosmos SDK and Cosmos. As of October, Cosmos released their EVMOS, making Cosmos fully EVM compatible.

credit: cosmos evmos (medium)

While Ethereum’s DeFi has certainly been eaten up a little by these other chains, their affinity to Ethereum, and in many ways, reliance on its EVM to access users, implies that no other ecosystem outside of Solana has been able to bootstrap (in a major way) an entire community, native protocols, and ecosystem outside of Ethereum.

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Krug went on to say that Pantera’s thesis revolves around the trade-offs other chains are making, rather than anything ETH itself is or isn’t doing. “There’s too many trade-offs other chains are making that Ethereum is not making on the decentralization side that is pretty important. “I don’t know if they’re best suited to be the new global financial settlement layer.”

To further drive home the point of how powerful Ethereum is, just consider all the Layer-2’s who have deployed massive resources, capital, and effort into scaling Ethereum. While they have their own tokens, too, the work going into scaling Ethereum is an entire industry in and of itself. If you think that is going to vanish overnight, I have a bridge to sell you in Brooklyn.

credit: coin98 analytics

Ethereum is not only here to stay, but according to Pantera, will be doing half the worlds transactions.

The post Hedge Fund: Half The World’s Transactions Will Be On Ethereum appeared first on CryptosRus.