Root
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Die hard Ethereum lovers will argue that such a statement as above sounds outrageous and that this can never happen especially with Ethereum 2.0 already rolled out but lets do a mild analysis on the situation and ill argue some points why I believe this is possible.
First off, Ethereum 2.0 is only in phase 0 so we wont be seeing any changes any time soon in terms of gas fees and for early DeFi adaptors this is not really that big of an issue with most of them staking their Ethereum with the initial launch of Ethereum 2.0. For new comers to the DeFi space the landscape looks somewhat different. All they see is high gas fees that make it useless to turn a profit with an average investment of $100.
What is the impact of Ethereum gas prices on the mindset of new comers? Well, its simple, they going to look for alternative blockchains that offer DeFi for example, Binance Smart Chain or Tron which is dramatically cheaper and use them instead. I already see this trend happening in third world countries who all starting out with Cryptocurrencies. Granted they way behind in terms of the DeFi ecosystem but they well placed at a time when DeFi is booming to attract all the new comers that just isn't willing to pay the high Ethereum gas fees. 2 years is a long time and we've seen the Ethereum DeFi ecosystem grow to what it is in less than that time so don't be shocked if we see another blockchain pulling weight in this space. Its crazy to think Synthetix has gain such great adoption with its sTokens. I honestly reviewed it and I think Morpher is better in many ways. MPH created a side chain that has zero transaction fees and it solves many problems that could benefit the DeFi community dramatically especially with mainstream adoption coming in to play. Its a pity that this hasn't taken off that well yet. I have hope that it could be big but people need to be aware of it and give it the time of day. Personally I prefer it over Synthetix.
Another important point is that with Ethereum moving from PoW to PoS this can also hinder people from actually wanting to use DeFi protocols cause you can earn Ethereum just for holding it. All in all I still think Ethereum is going to be the successor of the DeFi space but I do believe that another blockchain most likely Binance Smart Chain will gain a mass following over the next two years and they will have a strong hold over the low cap investors who are just getting started. This is evident with Trust Wallet becoming the official Binance Smart Chain Wallet.
Lastly if there is going to be two Ethereum coins trading it still doesn't resolve the current issues most of us face now in some way or there other where you have a small balance of one coin but you cant convert it to eth because of the fees. Ethereum 2.0 will resolve the long term issues that Ethereum faces but it will not do anything for the current issues faced on Ethereum 1.0. I know first world countries love Ethereum but I can tell you now that in third world countries sentiment is changing fast and believe it or not if Crypto is here to stay it is these third world countries that will have to take the leap in order for it to become a reality. For example, in Africa ADSL never had its day but almost as soon as Fibre is available in a area its sold out even before its launch. Hence Africa went from dial up straight to Fibre and I think the same thing is going to happen with Cryptocurrencies and Ethereum has the necessary ecosystem to make this happen but its so damn expensive that it will most likely happen on another blockchain if it does occur in the next 2 years. If it is a success you can best believe that this will be the end of Ethereum in third world countries.
First off, Ethereum 2.0 is only in phase 0 so we wont be seeing any changes any time soon in terms of gas fees and for early DeFi adaptors this is not really that big of an issue with most of them staking their Ethereum with the initial launch of Ethereum 2.0. For new comers to the DeFi space the landscape looks somewhat different. All they see is high gas fees that make it useless to turn a profit with an average investment of $100.
What is the impact of Ethereum gas prices on the mindset of new comers? Well, its simple, they going to look for alternative blockchains that offer DeFi for example, Binance Smart Chain or Tron which is dramatically cheaper and use them instead. I already see this trend happening in third world countries who all starting out with Cryptocurrencies. Granted they way behind in terms of the DeFi ecosystem but they well placed at a time when DeFi is booming to attract all the new comers that just isn't willing to pay the high Ethereum gas fees. 2 years is a long time and we've seen the Ethereum DeFi ecosystem grow to what it is in less than that time so don't be shocked if we see another blockchain pulling weight in this space. Its crazy to think Synthetix has gain such great adoption with its sTokens. I honestly reviewed it and I think Morpher is better in many ways. MPH created a side chain that has zero transaction fees and it solves many problems that could benefit the DeFi community dramatically especially with mainstream adoption coming in to play. Its a pity that this hasn't taken off that well yet. I have hope that it could be big but people need to be aware of it and give it the time of day. Personally I prefer it over Synthetix.
Another important point is that with Ethereum moving from PoW to PoS this can also hinder people from actually wanting to use DeFi protocols cause you can earn Ethereum just for holding it. All in all I still think Ethereum is going to be the successor of the DeFi space but I do believe that another blockchain most likely Binance Smart Chain will gain a mass following over the next two years and they will have a strong hold over the low cap investors who are just getting started. This is evident with Trust Wallet becoming the official Binance Smart Chain Wallet.
Lastly if there is going to be two Ethereum coins trading it still doesn't resolve the current issues most of us face now in some way or there other where you have a small balance of one coin but you cant convert it to eth because of the fees. Ethereum 2.0 will resolve the long term issues that Ethereum faces but it will not do anything for the current issues faced on Ethereum 1.0. I know first world countries love Ethereum but I can tell you now that in third world countries sentiment is changing fast and believe it or not if Crypto is here to stay it is these third world countries that will have to take the leap in order for it to become a reality. For example, in Africa ADSL never had its day but almost as soon as Fibre is available in a area its sold out even before its launch. Hence Africa went from dial up straight to Fibre and I think the same thing is going to happen with Cryptocurrencies and Ethereum has the necessary ecosystem to make this happen but its so damn expensive that it will most likely happen on another blockchain if it does occur in the next 2 years. If it is a success you can best believe that this will be the end of Ethereum in third world countries.
