Ethereum could ‘take over everything’, and there won’t be a multi-chain future, says EY’s blockchain leader

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Hello! Welcome to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I’m Frances Yu, crypto reporter at MarketWatch, and I’ll be telling you all about the latest and greatest digital asset news ever this week.

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crypto in a snap

bitcoin btcusd,
-0.52%
It was trading at around $29,529 on Thursday, down 1% over the past seven days, according to data from CoinDesk. Ether ETHUSD,
-4.90%
It fell by 4.6% in seven days to around $1,884. meme token dogecoin DOGEUSD,
-4.92%
declined 5% while another dog-themed token, the Shiba Inu SHIBUSD,
-6.69,
It is down 8% from seven days ago.

crypto metrics
biggest beneficiary

cost

%7-day return

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Green Satoshi Token_BSC

$18.88

88.9%

monero

$19.03

24.3%

ghost

$97.24

18.8%

looping

$0.53

17.5%

tron

$0.08

15.7%

Source: CoinGecko as of May 26

biggest disclaimer

cost

%7-day return

$24.13

-18.2%

the creator

$1179.88

-17.6%

apcoin

$6.61

-16.3%

elrond

$77.68

-15.3%

zcash

$85.41

-15.2%

Source: CoinGecko as of May 26

Does Ethereum Rule It All?

After the popular blockchain Terra collapsed earlier this month, discussions about a layer-one blockchain, or base network, have intensified. Terra was once the second largest blockchain for decentralized finance protocols, behind only Ethereum, in terms of total value locked.

Paul Brody, global blockchain leader at Ernst & Young Global, said he expects Ethereum to eventually “take everything,” although it faces competition from other smart contract blockchains such as Solana SolUSD.
-8.17%,
Avalanche AVAXUSD,
-10.61%,
cardano adausd,
-5.67%
and algorand ALGOUSD,
-5.20%,

According to Brody, Ethereum is the most reliable blockchain for development, although critics complained that the blockchain can be slow and expensive to transact.

“We at EY are very selective about which ecosystem to operate in. We audit across multiple ecosystems, but we only develop in the Ethereum ecosystem,” Brody told Distributed Ledger in an interview. The firm uses Polygon, an Ethereum scaling platform, for its enterprise activities to reduce transaction costs.

“Ethereum is just the biggest ecosystem, right? If you’re going to be good at only one thing, you have to be good at something that has the biggest market,” Brody said. Ethereum also has “a lot of institutional maturity,” Brody said.

Brody said he does not expect to see a multi-chain future where different blockchains coexist and all contribute to the ecosystem. “People talk about multi-series as if it was some kind of a given, like oh, we’re all headed for a multi-series future. It’s really weird,” Brody said. We don’t have multi-network internet, we have TCP/IP over Ethernet.”

“Technology loves industry standards,” Brody said. “EVM is a standard, isn’t it? TCP/IP is a standard. Windows is a standard. It’s very rare that you have really heterogeneous ecosystems, because it incurs a lot of overhead.”

In the context of bitcoin, Brody said he is unclear what the future holds for the biggest crypto, as it has not provided a compelling case for using it as a hedge against inflation. “More importantly, bitcoin is not a developer ecosystem,” Brody said.

role of stablecoins

Brody also highlighted the importance of stablecoins and called for a “good regulatory model.”

“The truth is, most people really want to transact in dollars,” Brody said. While Ether will be used to cover transaction fees on the Ethereum blockchain, “for enterprises in particular, the vast majority of transactions are being done in fiat currency-based stable coins,” according to Brody.

Regulators are paying more attention to stablecoins, especially after TeraUSD, once the largest algorithmic stablecoin that was supposed to trade one-to-one against the US dollar, fell as much as five cents at one point. Treasury Secretary Janet Yellen urged Congress to pass a new regulatory framework quickly, while Pennsylvania Sen. Pat Tommy, the top Republican on the Senate Banking Committee, held a press conference about his legislation in the area.

Terra 2.0?

Terra’s validators have passed a resolution According to Terraform Labs, which supports the blockchain, in order to “revive” the blockchain after its crash.

Per the proposal, the “revival plan” that will create a new Terra blockchain without stablecoins is expected to launch on Friday.

The proposal mentions that the new series will bear the name Terra, while the old series will be called Terra Classic, with its token being renamed Luna Classic. The new Luna tokens were tweeted by Luna Classic stakers, Luna Classic holders, residual UST holders and Terra Classic’s essential app developer, TerraForm Labs.

A16z’s crypto fund

Andreessen Horowitz said on Wednesday that it has raised $4.5 billion for its fourth and largest crypto fund. “We feel we are now entering the golden age of Web 3,” which refers to the so-called next generation of the Internet, Chris Dixon, founder and managing partner of the firm’s crypto unit, wrote in an emailed statement.

According to Dixon, of the $4.5 billion, $1.5 billion will be used for seed investment while $3 billion will go to venture investment.

Andreessen Horowitz raised the funds at a time when bitcoin is down more than 55% from its all-time high, while ether is down nearly 60% from its all-time high.

Minard’s Bearish Outlook

The crypto market is in shambles this year, with Guggenheim Partners global chief investment officer Scott Minrad warning that the digital asset could experience even more brutal deception, potentially pushing bitcoin back up to $8,000.

“When you break below $30,000 consistently, $8,000 is the final bottom, so I think we have a lot of room for downside, especially with the Fed being restrictive,” Minrad told MarketWatch’s Joseph Adinolfi. told in an interview.

The problem with crypto is that most coins are “junk” or “garbage,” according to Minerd. Although he believes that both bitcoin and ethereum will eventually survive the downturn, Minerd said that the right “prototype” has yet to be found to help the crypto get more widespread adoption.

Read more: Guggenheim’s Minrad believes fine arts will outperform real estate stocks, sees bitcoin down at $8,000

crypto companies, funds

shares of Coinbase Global Inc., coin,
+4.28%
They rose 3.2% to $69.28 on Thursday, and were up 2.9% over the past five trading sessions. Michael Saylors micro strategy Inc.
msttr,
+8.57%
It rose 8.9% to $215.82 on Thursday, a 2.4% gain over the past five days.

mining company Riot Blockchain Inc.
riot,
+5.52%
Shares rose 5.8% to $6.80, while it was down 4.7% over the past five days. shares of Marathon Digital Holdings Inc.
hit,
+6.11%
It gained 4.9% to $9.72 in the past five days, losing 6.1%. another miner, Ebang International Holdings Inc., Ebon,
+6.67%,
It gained 5.4% to $0.74, down 0.9% over the past five days.

Overstock.com Inc.
OSTK,
+8.11%‘s
Shares jumped 9% to $32.30. The shares have gained 15.7 per cent in a span of five sessions.

shares of Block Inc.
square,
+6.97%,
Previously known as Square, it gained 5.7% to $82.41, losing 5.4% for the week. Tesla Inc., TSLA,
+8.08%
Shares rose 7.8% to $710.03, and were up 0.1% over the past five sessions.

PayPal Holdings Inc.
PYPL,
+1.05%
It fell 0.1% to $80.02 over the course of five sessions, and was down 1.4%. Nvidia Corp.
NVDA,
+5.95%
The stock rose 6.4% to $108.61, up 5.5% over the past five trading days.

Advanced Micro Devices Inc.
amd,
+7.03%
Shares rose 7.7% to $99.80 on Thursday, compared to up 3.2% from five trading days earlier.

in crypto funds, ProShares Bitcoin Strategy ETF
bito,
+0.35%
rose 0.4% to $18.41 on Thursday, while Valkyrie Bitcoin Strategy ETF
btf,
+0.26%
was up 0.3% at $11.49. VanEck Bitcoin Strategy ETF
xbtf,
+0.24%
rose 0.2% to $28.88.

grayscale bitcoin trust
GBTC,
+1.10%
climbed 1.5%…

Credit: www.marketwatch.com /

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