Cointelegraph’s Brian Newar spoke with Alex Svanevik, CEO of blockchain data company Nansen, at Korea Blockchain Week (KBW) 2022 in Seoul to discuss the upcoming Ethereum (ETH) Merge and how it will affect other blocks. We discussed topics such as how it affects the chain.
According to Svanevik, the industry saw a ripple effect during the last bull market. He said that in trading non-fungible tokens (NFTs), a newcomer to the blockchain space does not want to pay hefty transaction fees of up to $100 to buy NFTs on the Ethereum network. rice field. Nansen, his CEO, noted that this demand for NFTs has spilled over to other blockchains where the fees for buying NFTs are not as high as Ethereum, he said. He explained:
“It will be interesting to see how well these other things can continue to have demand if much of it is driven by that ripple effect.
When asked what he thought would happen to some other blockchains after the merger, the executive said many could die. “Many chains will probably become ghost towns and ghost chains. But I think some chains will find their own niche,” he said.
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Nevertheless, Svanevik believes there are several chains that have been able to bootstrap their own ecosystems. To give examples, his CEO at Nansen cited Solana (SOL), Polygon (MATIC) and Avalanche (AVAX). However, Svanevik pointed out that there are other chains with infrastructure that make it easier for developers to participate in the ecosystem. He said:
“I think some chains managed to reach escape velocity if they had enough infrastructure to keep growing more projects.”
Svanevik also compared blockchains to cities. Blockchains need decentralized exchanges (DEXs), marketplaces, blockchain explorers, and more, just as cities need hospitals, law firms, and media, according to executives.
At the same event, 1inch co-founder Sergej Kunz told Cointelegraph that the decentralized finance (DeFi) market has a lot of room to grow in South Korea. Nonetheless, Kunz noted that there are challenges and barriers to entry, including a lack of knowledge about using crypto wallets and an understanding of DeFi.