Nansen CEO Forecasts Decline in Activity on Other Networks After The Merge

Cryptocurrency users may switch to using Ethereum following the network’s upcoming transition to the Proof-of-Stake consensus algorithm. Alex Svanevik, CEO of analytics firm Nansen, told Cointelegraph.

He compared blockchains to cities. According to the expert, just as metropolises need hospitals, lawyers and media, networks require, among other things, DEXs, marketplaces, and analytics firms.

Svanevik did not rule out that after the merge many networks would become ‘ghost towns’, some may carve out their own niches.

The head of Nansen noted that during the last bull market Ethereum alternatives drew attention amid NFT hype. He cited a rise in transaction fees on the network of the second-largest cryptocurrency to triple-digit values.

“It will be interesting to observe to what extent the current demand for competitors persists, and how much of the activity was tied to this side effect. We could see a decline in the metrics,” Svanevik predicted.

Svanevik did not rule out that some blockchains could become part of history. Projects that have built the infrastructure necessary to expand the ecosystem will remain, such as Solana, Polygon and Avalanche, he added.

Analysts at Citi отметили, that The Merge will reduce the energy intensity of the Ethereum network, shift issuance to a deflationary model, and “pave the way to a more scalable future through sharding.”

Ранее разработчики предварительно утвердили миграцию основной сети Ethereum на алгоритм консенсуса PoS на сентябрь 2022 года. 

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