Bitcoin continues to be the leading crypto project in space. But it’s no secret that Ethereum is quickly catching up with the pioneering cryptocurrency. Ethereum’s decentralized finance (DeFi) use cases have been a major source of this space as investors flocked to blockchain to profit from their cryptocurrency holdings. This led to popular Layer 2 solutions such as Polygon.
Polygon co-founder and COO Sandeep Nailwal recently visited Cointelegraph to talk about the future of the leading smart contract blockchain. Ethereum is the number 2 tier 1 blockchain, second only to bitcoins. And Niallval believes that it is only a matter of time before blockchain becomes the leading Layer 1 protocol. He explains this for a number of reasons and differences between the two blockchains.
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The DeFi space is thriving
During an exclusive interview with Cointelegraph, the COO lays out the reasons why Ethereum should have replaced Bitcoin as the leading Layer 1 protocol. Niallval cited the rise of the DeFi space as a major boost to this takeover. This is due to the fact that most of the decentralized financial activity was carried out on Ethereum, which made it the “ultimate level of settlement”.
Its popularity has pushed ETH to become even more valuable as a blockchain, giving it the ability to directly overtake the leading cryptocurrency. “Sooner or later, ETH will overtake Bitcoin and become the global standard,” said the chief operating officer. Niallval noted that Polygon will play an important role in the long-term success of the blockchain with the scalability solutions it provides.
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The co-founder stated that the blockchain may not actually exist in 10 years – it’s not just a win over Bitcoin for first place. This is due to limited use cases, and the COO believes that in order for Bitcoin to survive in the future, it must provide more features than being a medium of exchange and investment.
Ethereum filters noise
Over time, a number of projects have emerged that should compete with Ethereum for the attention that DeFi is drawing to it. These blockchains, referred to as the “ETH killers”, have grown to take market share from the leading DeFi platform. Solana has been at the forefront of this competitive movement and has grown significantly over Ethereum.
ETH price rebounds above $3,200 | Source: ETHUSD on TradingView.com
Despite the growing popularity of other Tier 1 solutions, the Polygon co-founder does not believe there is any blockchain that can take over Ethereum. The Tier 1 solution has retained most of the market despite the growing number of competitors.
Ethereum is likely to maintain its leading position in the market for the foreseeable future. And with proof of stake due to hit the blockchain next year, ETH will dominate both DeFi and the crypto space.
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