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Bitcoin still remains the number one crypto project in space. But it’s no secret that Ethereum quickly caught up with the cryptocurrency pioneer. Ethereum’s Decentralized Finance (DeFi) use cases have been the main contributor to this space, as investors flocked to blockchain to earn returns on their crypto holdings. This gave birth to popular Layer 2 solutions like Polygon.
Recently, Polygon co-founder and COO Sandeep Nailwal was on Cointelegraph to talk about the future of the leading smart contract blockchain. Ethereum is the number 2 Layer 1 blockchain, behind bitcoin. And Nailwal believes it’s only a matter of time before blockchain becomes the primary Layer 1 protocol. He attributes this to a number of reasons and differences between the two blockchains.
Related reading | More than $ 5 billion in Bitcoin and Ethereum moved from cold wallets amid China crackdown
The DeFi space is booming
In an exclusive interview with Cointelegraph, the COO describes the reasons why Ethereum needed to replace bitcoin as the primary Layer 1 protocol. Nailwal cited the growth of the DeFi space as a major impetus for this takeover. . This is because the majority of decentralized financial activity has been carried out on Ethereum, making it “the ultimate settlement layer”.
Its popularity has driven ETH to become even more valuable as a blockchain, which puts it directly in a position to overtake the premier cryptocurrency. “Sooner or later ETH will overtake Bitcoin and become the global standard,” said the COO. Nailwal pointed out that Polygon will play a major role in the long-term success of blockchain with the scalability solutions it provides.
Related reading | Crypto Analyst Says Ethereum Market Is ‘Time Bomb’, Here’s Why
More than just beating Bitcoin for the top spot, the co-founder expressed that blockchain may in fact not exist in 10 years. This is due to the limited use cases and the COO believes that if bitcoin is to survive in the future, it must provide more functions than being a medium of exchange and investment.
Ethereum filters noise
Over time, a number of projects have come out of the woods to compete with Ethereum for the DeFi attention it receives. Called “ETH killers,” these blockchains have grown to take market share from the main DeFi platform. Solana has been at the forefront of this competitive movement and has grown significantly as it takes on Ethereum.
ETH price rebounds above $3,200 | Source: ETHUSD on TradingView.com
Despite the growing popularity of other Layer 1 solutions, the Polygon co-founder doesn’t believe there is a blockchain capable of taking control of Ethereum. The layer 1 solution has retained a majority market share despite the rise of its competitors.
Ethereum will most likely retain the top spot in the market for the foreseeable future. And with proof of stake slated for the blockchain next year, ETH is expected to dominate both the DeFi and crypto space.
Chart from TradingView.com
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