During the Korea Blockchain Week (KBW) 2022 in Seoul, Cointelegraph’s Brian Newar had a conversation with Alex Svanevik, the CEO of blockchain data firm Nansen. They delved into topics such as the upcoming Ethereum Merge and its potential impact on other blockchains.
Svanevik highlighted that during the last bull run, there was a spillover effect in the industry, particularly in the trading of nonfungible tokens (NFTs). Newcomers to the blockchain space were reluctant to pay exorbitant transaction fees, which could reach up to $100, for purchasing NFTs on the Ethereum network. As a result, the demand for NFTs spilled over to other blockchains where the fees were comparatively lower. Svanevik explained:
“The demand for NFTs spilled over to chains where it was cheaper to buy NFTs. Ethereum’s fees were too high, and newcomers didn’t want to pay that much.”
When asked about the fate of other blockchains after the Ethereum Merge, Svanevik predicted that many of them might fade away. He referred to them as “ghost towns” or “ghost chains.” However, he also expressed his belief that some blockchains would find their own niches and survive the merge. Svanevik said:
“I think many chains will become ghost towns, but some will find their own niches.”
Svanevik acknowledged that certain chains like Solana, Polygon, and Avalanche have successfully established their own ecosystems. However, he emphasized that there are numerous other chains with the necessary infrastructure to attract developers to their ecosystems. Svanevik stated:
“There are more chains beyond Solana, Polygon, and Avalanche that have the infrastructure to attract developers.”
Drawing an analogy, Svanevik likened blockchains to cities, noting that just as cities require hospitals, law firms, and media, blockchains need decentralized exchanges (DEXs), marketplaces, and blockchain explorers, among other elements.
During the same event, Sergej Kunz, the co-founder of 1inch, expressed his belief that the decentralized finance (DeFi) market has significant potential for growth in South Korea. However, he acknowledged that there are barriers to entry, including the lack of knowledge about crypto wallets and understanding of DeFi among the general public.