Cointelegraph’s John Newar spoken with Alex Svanevik, the Chief executive officer of blockchain data firm Nansen in the Korea Blockchain Week (KBW) 2022 locked in Seoul and discussed topics such as the approaching Ethereum (ETH) Merge and just how it’ll affect other blockchains.
Based on Svanevik, the observed a spillover effect within the last bull run. He stated that in buying and selling nonfungible tokens (NFTs), newcomers within the blockchain space did not wish to pay hefty transaction charges as high as $100 to buy NFTs within the Ethereum network. The Nansen Chief executive officer noted this interest in NFTs spilled to other blockchains in which the charges to buy NFTs weren’t up to in Ethereum. He described that:
“It’ll be interesting to determine how much other ones could have demand if a variety of it was driven with that spillover effect. You may have much less usage.”
When requested what he thinks may happen with a other blockchains following the merge, the manager stated that lots of may die out. “Many chains will most likely be a ghost town or ghost chains. But I’m sure that some chains will discover their very own niches,” stated Svanevik.
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Regardless of this, Svanevik believes there are some chains available which have been in a position to bootstrap their very own environments. Citing examples, the Nansen Chief executive officer pointed to Solana (SOL), Polygon (MATIC) and Avalanche (AVAX). However, Svanevik noted there are more chains available which have the infrastructure that allows developers in the future to their environments. He stated that:
“I think some chains have were able to achieve escape velocity where there’s enough infrastructure to enable them to keep growing more projects.”
Svanevik also compared blockchains to metropolitan areas. Based on the executive, just like metropolitan areas need hospitals, lawyers and also the media, blockchains need their decentralized exchanges (DEX), marketplaces, blockchain explorers and much more.
Within the same event, 1inch co-founder Sergej Kunz told Cointelegraph the decentralized finance (DeFi) market provides extensive room to develop in Columbia. Regardless of this, Kunz noted there are challenges and barriers to entry, including the possible lack of understanding in making use of crypto wallets and knowledge of DeFi.
