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Nansen CEO: Ethereum Merge Might Lessen Usage For Other Blockchains

Alex Svanevik, the CEO of Nansen mentioned that while several blockchains will become ghost towns after the Merge, some will be able to find their own niches.

As per Svanevik, the industry observed a spillover effect in the last bull run. He mentioned that in trading NFTs, newcomers in the blockchain domain didn’t want to pay hefty transaction fees of up to hundred dollars to buy NFTs in the Ethereum network. Svanevik noted that this demand for non fungible tokens spilled over to other chains where the fees to buy NFTs weren’t as high as in Ethereum.

He explained,

“It’ll be interesting to see to what extent these other ones can continue to have demand if a lot of it was driven by that spillover effect. You might have a lot less usage.”

He added,

“Many chains will probably become a ghost town or ghost chains. But I do think that some chains will find their own niches.”

In spite of this, Svanevik is of the opinion that there are some blockchains out there that have been able to bootstrap their own ecosystems. Quoting examples, the Nansen CEO pointed to SOL, MATIC and AVAX.

Nevertheless, Svanevik mentioned that there are more blockchains with the infrastructure that makes it easy for developers to come into their ecosystems.

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