Before making its transition to Proof-of-Stake, Ethereum made a name for itself in the crypto industry for its problems with scalability and high transaction fees. A number of layer 2 blockchains were then created to fill the gaps in the network, and to offer disgruntled users a credible alternative.
Dubbed the Ethereum killer, these networks had strong adoption before losing their luster, due to a lack of further innovations. Arthur Hayes, the founder and former CEO of the BitMEX exchange, believes that the latter lacks the necessary weapons to outperform Ethereum in the next bull cycle.
The talent of Ethereum developers makes the difference
In a recent interview with the YouTube channel Crypto Banter, Arthur Hayes talked about the rivalry between Ethereum and its main tier 2 rivals. He claimed that the latter could indeed present investment opportunities in the next bull market cycle in cryptocurrency market.
However, he expressed concern about the ability of their respective native cryptocurrencies to outperform ether (ETH). Although he admits that they are efficient in terms of transactions per second, he said that they are still not taking advantage of the developer talent available to Ethereum.
“It’s not all based on transactions per second (TPS) or whatever. It is the talent of the developers. Ethereum has a few thousand developers. The next blockchain could have a few hundred, and that’s all that matters. Developers create this ecosystem. They take the apps. »
He went on to say that they won’t be able to do better than Ethereum right now, “because they don’t have the developer mindset.”
Also Read: Ex-BitMEX CEO Explains How Bitcoin Will Reach $1 Million in 2030
Seek innovation beyond TPS to stimulate new growth
In addition to the lack of talented developers, Hayes pointed to the other ailment suffered by Ethereum’s main competitors. Taking the example of Solana (SOL), he explained that the blockchain must find another major innovation to present to the public before the next bull cycle.
He asserted that the hype around high GSTs and low transaction fees can no longer work.
“What will they bring to market in the next cycle? Because if it’s just, “Oh Ethereum is slow. It processes so many transactions. Transaction fees are high. We’re faster because of some fancy math we wrote down on a piece of paper, and our testnet is really fast.”, he It worked the first time, it won’t work the second time. »