Ethereum (ETH) is mainly bullish in 2021, if we do not count the past week and a half. Unfortunately, there are lasting problems within the ecosystem. Problems with scaling are an example of this. Although the switch to Ethereum 2.0 should remedy this, there is still a certain skepticism surrounding the network.
This was also covered in the Unchained Podcast with Kyle Samani of Multicoin Capital and Kain Warwick of Synthetix. In general, the Ethereum community is optimistic, but Samani was less enthusiastic. According to him, the current approach to scaling ETH is not enough. He did mention that he has a long position on ETH, even more than on bitcoin (BTC).
Opportunities for others
Warwick shares Samani’s view and also started to mention competitors like Solana (SOL) and Binance Smart Chain (BSC):
“The fact that Ethereum has taken longer to scale than we would have liked has created a market opportunity for others.”
While Warwick points out that scaling up is too slow and ETH has missed a lot of action as a result, he also believes that BSC’s performance is more a deviation than the norm.
“There has been a plethora of activity that should be on Ethereum but has just drifted into this other chain and that is just a missed opportunity for the Ethereum community.”
Optimism and Uncertainty
Warwick is convinced that the Ethereum network will see enough action after a number of updates, especially Zero Knowledge Solutions is important because of the lower gas fees that it entails.
Samani, on the other hand, was less positive, saying that gas fees will not be the biggest obstacle for ethereum. As for the future, he says the following:
“It is actually impossible to answer the question of what a scaled Ethereum application will look like in 24 months. It’s not that I don’t know, it’s that it’s impossible to know because you have too many things that interfere with each other. Too many things will collide, and no one really knows how it will turn out. ”