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Half Of The World’s Transactions Will Be On Ethereum, According To A Hedge Fund

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Pantera Capital, a large hedge fund and a major player in the crypto market stated they are long ETH. Joey Krug, the chief investment officer at Pantera, made the case for Ethereum in a recent interview.

Even if the rise of other L1’s continues to accelerate, Krug claims that they are “unlikely to threaten Ethereum’s dominance.” “If you fast forward 10 to 20 years, a large percentage, perhaps even north of 50%, of the world’s financial transactions would touch Ethereum in some way, shape, or form.”

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We can presume that by ‘touch,’ Krug means that transactions will be settled on Ethereum in some way, even if you, the user, are interacting with a Layer-2 or anything similar. The fact that Roll Ups pay to settle on Ethereum and use ETH is one reason for this.

Pantera’s portfolio includes a significant amount of ETH, as you might expect. According to Krug, it is one of their top three holdings. While it’s unsurprising that they’d make a bull case for ETH, it’s surprising that Krug and Pantera are so optimistic on Ethereum that they believe half of the world’s money will be settled on it.

Pantera is one of the world’s leading crypto-focused hedge funds, with almost $6 billion in assets. While the rest of the world is focused on the “new Ethereum,” whether it’s Solana or Terra, Pantera believes that the good old Ethereum will triumph. Krug basically claims that every Layer 1 is striving to be Ethereum’s second layer.

As you can see in the image above, most chains are EVM compatible, and chains frequently go to great lengths to maintain their “affinity” to Ethereum. Terra is created utilising the Cosmos SDK and Cosmos, despite the fact that it is not EVM compatible. Cosmos released its EVMOS in October, making Cosmos completely EVM compatible.

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While these other chains have eaten into Ethereum’s DeFi, their affection for Ethereum, and in many ways, reliance on its EVM to reach users, suggests that no other ecosystem outside of Solana has been able to bootstrap (in a significant manner) a full community, local protocols, and ecosystem.

Pantera’s thesis, according to Krug, is around the trade-offs other chains are making, rather than what ETH 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.”

Consider all the Layer-2’s who have invested tremendous resources, capital, and effort towards scaling Ethereum to emphasise how powerful it is. While they have their own tokens, the work that goes into scaling Ethereum is a separate business. If you believe that will vanish overnight, I can sell you a Brooklyn bridge.