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Ethereum can take it all, and there will be no multi-chain future, says EY blockchain leader

Welcome! Welcome back to Distributed Ledger, the weekly crypto newsletter that hits your inbox every Thursday. I’m Francis Yu, a crypto reporter at MarketWatch, and I’ll share with you the latest and best digital assets this week so far.

Find me on Twitter at MustafaHosny Oh God, Amen To send feedback, or tell us what you think we should cover.

Encryption in a jiffy

Bitcoin BTCUSD,
-1.03%
It’s down 1% over the past seven days, trading at around $29,529 on Thursday, according to CoinDesk data. Ether ETHUSD,
-6.63%
It lost 4.6% over seven days to around $1,884. Dogecoin DOGEUSD code meme,
-5.50%
It fell 5% while another token named after a dog, Shiba Inu SHIBUSD,
-7.29And
It’s down 8% from seven days ago.

coding standards
Biggest Winner

price

7% day return

Green Satoshi Symbol_BSC

USD 18.88

88.9%

Monero

USD 19.03

24.3%

avi

USD 97.24

18.8%

episode

$0.53

17.5%

you can see

0.08 dollars

15.7%

Source: CoinGecko as of May 26

Biggest loser

price

7% day return

$24.13

-18.2%

maker

1179.88 USD

-17.6%

epicoin

$6.61

-16.3%

Elrond

USD 77.68

-15.3%

Zcash

USD 85.41

-15.2%

Source: CoinGecko as of May 26

Ethereum rules everything?

Discussions about Layer 1 blockchain, or core networks, have heated up after the collapse of the popular Terra Blockchain earlier this month. Terra was once the second largest blockchain for decentralized finance protocols by total locked value, behind only Ethereum.

Paul Brody, global blockchain leader at Ernst & Young Global, said he expects Ethereum to eventually “take control of everything,” even though it has been facing competition from other smart blockchains such as Solana SOLUSD,
-8.78%And
Avalanche AVAXUSD,
-11.41%And
Cardano ADAUSD,
-6.60%
and Algorand ALGOUSD,
-5.83%.

Ethereum is the most reliable blockchain to develop, according to Brody, although critics have complained that the blockchain can be slow and expensive for transactions.

“We are very selective at EY about the ecosystem we operate in,” Brody told Distributed Ledger in an interview. “We scrutinize across many ecosystems, but we are only developing in the Ethereum ecosystem.” The company uses Polygon, a platform to scale Ethereum, for its corporate activities to lower transaction costs.

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

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-threading like it’s kind of a given, like oh, we’re all headed toward a multi-threaded future. We don’t have multi-network Internet, we have TCP/IP over Ethernet,” Brody said.

“The tech industry loves standards,” Brody said. “EVM is a standard, right? TCP/IP is a standard. Windows is the standard. It’s very rare that you have really heterogeneous ecosystems, because that puts you at a lot of expense.”

Regarding bitcoin, Brody said it was not clear what the future of the largest cryptocurrency would be, as he did not make a convincing case for its use as an inflation hedge. “Most importantly, bitcoin is not a developer ecosystem,” Brody said.

The role of stablecoin

Brody also highlights the importance of stablecoins and calls for a “good regulatory model.”

“The reality is that the vast majority of people really want to deal in dollars,” Brody said. While Ether will be used to cover transaction fees on the Ethereum blockchain, “for institutions in particular, the vast majority of transactions will take place in fiat-based stablecoins,” according to Brody.

Regulators are paying increased attention to stablecoins, especially after TerraUSD, which was once the largest algorithmic stablecoin that was supposed to trade one-to-one against the US dollar, plummeting to five cents at one point. Treasury Secretary Janet Yellen Urge Congress to quickly pass a new regulatory frameworkPennsylvania Senator Pat Toomey, the top Republican on the Senate Banking Committee, held a news conference. Promote his laws in this area.

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Terra 2.0?

Terra auditors have pass a suggestion To “revive” the blockchain after crashingAccording to Terraforms Labs, which supports blockchain.

The “revival plan” will create a new Terra blockchain without stablecoins, which is expected to be launched on Friday, according to the proposal.

The proposal indicated that the new series would keep the Terra name, while the old series would be called Terra Classic, with its token renamed Luna Classic. The new Luna tokens will be dropped via Luna Classic Stakers, Luna Classic holders, remaining floor tank holders and the core app developers of Terra Classic, according to a Terraform Labs tweet.

A16z encoder box

Andreessen Horowitz said on Wednesday he did raised $4.5 billion for Fourth and largest crypto fund. “We believe we are now entering the golden age of Web 3,” Chris Dixon, founder and managing partner of the company’s crypto unit, wrote in an email statement.

Of the $4.5 billion, about $1.5 billion will be used in seed investments while $3 billion will be used in project investments, according to Dixon.

Andreessen Horowitz raised the fund at a time when bitcoin is down more than 55% from its all-time high while ether is trading about 60% below its record high.

Maine Bearish look

The cryptocurrency market is in turmoil this year, while Scott Minerd, chief global investment officer at Guggenheim Partners, warned that digital assets could face an even harsher laundering, with bitcoin potentially falling to $8,000.

“When you get consistently below $30,000, $8,000 is the bottom eventually, so I think we have a lot more room for the downside, especially with the Fed being tied,” Minerd told MarketWatch’s Joseph Adenolfi in an interview.

The problem with cryptocurrencies is that most coins are “junk” or “trash,” according to Maynard. Although he believes that both Bitcoin and Ethereum will eventually survive the deflation, Mineard said it is possible that the cryptocurrency has not found the right “prototype” yet to help drive widespread adoption.

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Read more: Guggenheim’s Minerd thinks fine arts and real estate will outperform stocks, sees bitcoin drop at $8,000

Crypto companies and funds

shares Coinbase Global Inc. Currency,
+ 3.63%
It gained 3.2% to $69.28 on Thursday and is up 2.9% over the past five trading sessions. Michael Saylor micro . strategy company
MSTR,
+ 8.81%
It rose 8.9% Thursday to $215.82 and is up 2.4% over the past five days.

mining company Riot Blockchain Inc.
riot,
+ 4.90%
The shares rose 5.8% to $6.80, while they were down 4.7% over the past five days. shares Marathon Digital Holdings Inc.
Mara ,
+ 6.04%
It gained 4.9% to $9.72 and lost 6.1% over the past five days. another miner, Ebang International Holdings Inc.. Ebon,
+ 9.18%And
It rose 5.4% to $0.74, losing 0.9% over the past five days.

Company Overstock.com
OSTK,
+ 7.41%‘s
Shares jumped 9% to $32.30. Shares are up 15.7% over the five-session period.

shares Block Company
S.Q.,
+ 7.04%And
Formerly known as Square, it rose 5.7% to $82.41, with a 5.4% loss for the week. Tesla Corporation. TSLA,
+ 7.46%
The shares rose 7.8% to $710.03 and are up 0.1% over the past five sessions.

PayPal Holdings Inc.
PYPL,
-0.06%
It was down 0.1% at $80.02, and it was down 1.4% over five sessions. Nvidia Corporation.
NVDA,
+ 5.42%
Shares are up 6.4% at $180.61, eyeing a 5.5% gain over the past five trading days.

Advanced Micro Devices Inc.
AMD,
+ 6.59%
Shares are up 7.7% to $99.80 Thursday, while they are up 3.2% from five trading days before.

Among the crypto boxes, ProShares Bitcoin Strategy ETF
beto,
-0.22%
It rose 0.4% to $18.41 Thursday, while Valkyrie Bitcoin ETF Strategy
BTF,
-0.34%
It rose 0.3% to $11.49. VanEck Bitcoin Strategy ETF
xbtf,

It gained 0.2% to $28.88.

Grayscale Bitcoin Box
GBTC,
+ 0.10%
It traded up 1.5% at $19.29.

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