Ethereum Faces Challenges as Rival Blockchains Gain Ground

Meltem Demirors, Chief Strategy Officer of CoinShares, has expressed concerns about Ethereum’s narrative amid the emergence of competing layer-1 blockchains.

Bitcoin Still Preferred for Newcomers

According to Demirors, new investors are more likely to choose Bitcoin as their entry point into crypto due to its simpler narrative as “digital gold” or “money backed by physics.”

Ethereum’s Scaling Roadmap and Narrative

Demirors acknowledges the strength of the Ethereum community but notes that it lacks the die-hard loyalty seen with Bitcoin. She also questions whether Ethereum can maintain its dominance as faster, cheaper, and more user-friendly layer-1 blockchains gain traction.

Can Ethereum Preserve Market Share?

Demirors wonders if Ethereum can preserve its market share as new layer-1s launch with features such as compatibility with Ethereum’s virtual machines. She emphasizes that the ability to utilize Ethereum’s decentralized application ecosystem on these newer chains raises questions about Ethereum’s future market share.

Ethereum’s Lack of Maximalists

Demirors points out that Ethereum doesn’t have the same level of “maxis” (maximalists) as Bitcoin, who are fiercely loyal to their preferred cryptocurrency. She believes this narrative loyalty could be a factor in Ethereum’s challenges.