Ethereum is the center of the crypto economy

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Ethereum is considered the culmination of the crypto economy by a cross section of analysts. The intersection of Metaverse, DeFi, and NFT is seen as a factor in his claim to the top spot. Ethereum will have to fight against its “killers”. before they can assume the role of king in the cryptocurrency economy.

The events of 2021 have sparked deep conversations about the future of cryptocurrencies and the role they need to play in the wave of innovation. At the heart of this buzz is Ethereum, the second largest cryptocurrency with a myriad of use cases.

Crypto-Economy Center

Ryan Watkins, a researcher at a large analytics firm, Messari has pitched his tent with Ethereum in the debate over which cryptocurrency will take center stage in space. He took to Twitter to express his unwavering belief in the asset’s ability to play a significant role despite its shortcomings.

“The market suddenly realized that $ ETH is a bet on: Internet Money, The Metaverse, DeFi, NFT and Web 3 all rolled into one powerful asset,” said Watkins. “$ ETH is the center of the crypto-economy. “

It is difficult to criticize his opinion, especially with recent events around the network. Facebook’s foray into the Metaverse sent the prices of the Metaverse tokens parabolic as Ethereum-based platforms around the Metaverse rose in value. Sandbox and Decentraland grew after Facebook’s announcement and at the center of it all is Ethereum. Since the announcement, Ethereum has hit a new all-time high of $ 4,638, while trading volumes for the asset now hover around $ 15 billion.

NFTs became mainstream in 2021 and guess what the driving force was – Ethereum. Ethereum is considered the de facto home of DeFi because several protocols are articulated on the network, Ethereum representing more than 69% of DeFi TVL. The network is currently home to over 3,000 Dapps and as the world moves towards a decentralized future, Ethereum already has its foot in the door.

Advertising not so fast, Ethereum

Ethereum still has a long way to go before overthrowing Bitcoin which controls 43.01% of the market share. Despite all of its impressive numbers, Ethereum holds 19.5% of the market and will need to double its share before moving closer to Bitcoin.

There is also the age-old problem of Ethereum gas fees which can stifle the network’s quest to become the center of the crypto-economy. Rising gas prices have resulted in the migration of projects to ETH killers like Solana and Polkadot.

One user comments that “high gas prices have been around forever” and wonders why the network is still dominant. Maybe institutional investors have seen the end of the game and continue to buy the asset.

The solution to its growing gas challenge is on the horizon with the development of Ethereum 2.0 at full speed. Altair’s upgrade was successfully launched at the end of October while further upgrades are in the works ahead of the merger.

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