Nansen CEO Alex Svanevik talked about Ethereum Merge in a recent interview and discussed the upcoming Merge on the Ethereum network and how it will affect other blockchain networks.

Merge May Reduce Need for Other Blockchains

At the 2022 Korean Blockchain Week (KBW) held in Seoul, Alex Svanevik, CEO of blockchain data company Nansen, made statements on the upcoming Merge on the Ethereum (ETH) network and how it will affect other blockchain networks.

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According to Svanevik, the industry witnessed a spillover effect during the last bull market. According to the CEO, new entrants to the blockchain space did not want to pay the hefty $100 transaction fees when purchasing NFT on the Ethereum network. Svanevik stated that the demand for NFTs has also spread to other blockchain networks whose transaction fees are not as high as Ethereum.

   “If most of this interest comes from spillover effects, it will be interesting to watch to what extent others continue to be in demand. They are much less usable. After Merge, most other blockchains may disappear. Most chains will likely turn into ghost towns or ghost chains. I believe they will find their audience.”

On the other hand, Svanevik also thinks that there are some chains that have bottlenecked his ecosystem. Networks he gave as examples include Solana (SOL), Polygon (MATIC), and Avalanche (AVAX). Still, Svanevik says there are more chains with the infrastructure to make it easier for developers to come to their ecosystem. Svanevi also compared blockchains to cities. According to the executive, just as cities need hospitals, law firms and the media, blockchains need their own decentralized exchanges (DEX), marketplaces and blockchain crawlers.

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Institutional Investors Turn To Ethereum!

According to a report shared by CoinShares, Ethereum (ETH) is starting to attract the attention of institutional investors as the Merge date approaches. According to the report, $16.3 million was entered into Ethereum last week.

The team behind the leading altcoin, Ethereum, has been working for a long time to transition to a more efficient blockchain network. According to James Butterlife, Head of Research at CoinShares, the current entries are closely related to Merge.