Bitcoin is still the best crypto project in the space. But it’s no secret that Ethereum has been catching up quickly with the leading cryptocurrency. The use cases of decentralized finance in Ethereum (DeFi) have been the main contributor behind this space as investors flock to the blockchain to earn returns on their crypto holdings. This gave rise to popular Layer 2 solutions such as Polygon.
Most recently, Polygon co-founder and COO Sandeep Nailwal was on Cointelegraph to talk about the pioneering blockchain future of smart contracts. Ethereum is the No. 2 Layer 1 blockchain, just behind Bitcoin. Nailwal believes it is only a matter of time before the blockchain takes over the pioneering Layer 1 protocol. He attributes this to a number of reasons and differences between the two blockchains.
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thriving DeFi space
During an exclusive interview with Cointelegraph, COO explains the reasons why Ethereum took over from Bitcoin as the leading layer 1 protocol. Nailwal cited the growth of the DeFi space as a big boost to this acquisition. This is because the majority of decentralized finance activities have been carried out on Ethereum, making it the “ultimate settlement layer.”
Its popularity has pushed ETH to become more valuable as a blockchain which puts it directly in a position to overtake the top cryptocurrency. “Sooner or later, ETH will overtake Bitcoin and become the global standard,” said the COO. Nailwal noted that Polygon will play a key role in the long-term success of blockchain with its scalability solutions.
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More than just beating Bitcoin at the top, the co-founder expressed that the blockchain may not actually exist 10 years from now. This is due to limited use cases and the COO believes that if Bitcoin is to survive in the future, it needs to provide more functionality than a medium of exchange and investment.
Ethereum Noise Filter
Over time, a number of projects have come out of the woodwork to compete with Ethereum for the attention it has on DeFi. Referred to as the “ETH killer,” this blockchain has risen to take market share from the leading DeFi platform. Solana has been at the forefront of this competitive movement and has grown tremendously with its rise against 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 does not believe there is any blockchain that can acquire Ethereum. The first tier solution maintained a majority market share despite the rise of its competitors.
Ethereum is likely to maintain its number one position in the market for the foreseeable future. With proof of stake due to come to the blockchain next year, ETH is set to dominate both the DeFi and cryptocurrency space.
Chart from TradingView.com
