The CEO of global investment firm VanEck, Jan van Eck believes the cryptocurrency industry should shift its focus from established coins like Bitcoin and Ethereum and related exchange-traded funds to the issue of transaction fees.
In an interview, van Eck argued that unpredictable transaction costs on the Bitcoin and Ethereum blockchains are hindering the development of useful applications within these ecosystems.
He argued that the “most important story of 2023” is “simply that transaction costs are now available at affordable rates through Solana or the so-called layer 2s,” van Eck said on CoinDesk TV.
Solana, a high-performance blockchain that uses a unique method of ordering transactions to significantly improve throughput, is seen as a competitor to Ethereum, as it offers cheaper and faster transactions. Layer 2 solutions, meanwhile, are separate blockchains built on top of existing ones, like Ethereum, to address scalability and data congestion issues.
During the interview, VanEck’s CEO revealed he believes that these new solutions, enabling lower and more predictable transaction fees, will empower developers to create more usable applications that will be major drivers of future growth in the cryptocurrency space.
On a separate note, Jan van Eck downplayed the chances of Ether exchange-traded funds being approved by their May deadline. He pointed out that, unlike the process for Bitcoin ETFs, the U.S. Securities and Exchange Commission has not been responsive to filings from potential issuers of Ether ETFs.
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- Source: https://www.cryptocompare.com/email-updates/daily/2024/apr/10/
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