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cryptocurrency October 24, 2022

This Is Why BitMEX Co-Founder Arthur Hayes Believes Solana and Others Won’t Beat Ethereum Yet 2

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  • BitMEX co-founder Arthur Hayes has high hopes for Ethereum, saying that competitors like Solana would not beat it.
  • Hayes is bullish on Ethereum because of the amount of development going on in its ecosystem, which he says is more important than transactions per second or lower gas fees.
  • Ethereum does beat other networks on many comparisons. It holds 57% of the DeFi market share and has nearly 3,000 DApps.

Ethereum doesn’t look like it’s going to face any trouble from Solana or other blockchain networks, according to BitMEX co-founder Arthur Hayes. The former CEO of the exchange made the remarks in an interview with Crypto Banter, saying that there was potential for Ethereum rivals to do well, but they would not be able to dethrone the cryptocurrency in the long run.

One of the main reasons why Hayes is so bullish on Ethereum is simply because of the amount of development work going into the ecosystem. He does not think that metrics such as transactions per second matter as much as pure development work. He said,

“… Now, I don’t think anything comes close to competing with Ethereum. It’s not all based on transactions per second or blah blah blah the other stuff. It’s developer talent. Ethereum has a few thousand developers. The next blockchain might have a few hundred, and that’s all that matters. The developers create this ecosystem. They build the applications.”

Hayes said that most layer 1 efforts have just been a copy and paste of what Ethereum did. While there may have been profit potential in the past, upcoming cycles indicate that there are fewer good trades going forward. The narrative of having better throughput or lower gas fees compared to Ethereum loses its steam as time passes, Hayes says.

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Ethereum vs. Solana development activity
Development Activity on Ethereum vs. Solana: Santiment

He is not wrong about Ethereum having massive development going on, and he has been bullish on the cryptocurrency before. Major companies and financial institutions all show interest in the market’s second-biggest network. Ethereum also dominates DeFi, which does not look like it will change soon.

Ethereum Is Far Ahead in Terms of Many Metrics

Analysts frequently discuss if there is potential for networks that are competing with Ethereum to outperform soon. So far, no metrics show that might happen in the near future. Analysts also believe that Ethereum will start a bull run.

The number of DApp on Ethereum is nearing 3,000, while the number of DApp on Solana is under 400. In terms of total value locked, Ethereum has over $30 billion locked in at the movement. Compare that to Solana, which has $894.26 million locked in.

Ethereum TVL
Total Value Locked in Ethereum vs. Other Blockchains: DefiLlama

Ethereum utterly dominates the share of total value locked in the DeFi market, with over 57% of the market. BSC comes in second with 10.24%. TRON is third with 10.1%, and Solana has 1.72%.