During the Korea Blockchain Week (KBW) 2022 in Seoul, Cointelegraph’s Brian Newar interviewed Alex Svanevik, the CEO of blockchain data firm Nansen. They discussed the upcoming Ethereum (ET) Merge and its impact on other blockchains.
Svanevik highlighted the spillover effect observed in the industry during the last bull run. He noted that newcomers to the blockchain space were reluctant to pay high transaction fees, reaching up to $100, for purchasing nonfungible tokens (NFTs) on the Ethereum network. As a result, there was a surge in demand for NFTs on alternative blockchains with lower fees. Svanevik explained:
“When asked about the fate of other blockchains after the merge, Svanevik predicted that many would become deserted or ‘ghost chains.’ However, he believed that certain blockchains would carve out their own niches.”
Despite this, Svanevik acknowledged that some blockchains like Solana (SOL), Polygon (MATIC), and Avalanche (AVAX) had successfully established their own ecosystems. He also emphasized that there are more chains with developer-friendly infrastructure, making it easier for developers to join their ecosystems. Svanevik stated:
“Svanevik drew a comparison between blockchains and cities, highlighting the need for decentralized exchanges (DEXs), marketplaces, blockchain explorers, and other essential components within blockchain ecosystems.”
During the same event, Sergej Kunz, the co-founder of 1inch, expressed optimism about the decentralized finance (DeFi) market’s potential for growth in South Korea. However, Kunz acknowledged the challenges and barriers to entry, such as limited knowledge of crypto wallets and understanding of DeFi.