By Frances Yue
Hello! Welcome back to Distributed Ledger, our weekly crypto newsletter that reaches your inbox every Thursday. I’m Frances Yue, crypto reporter at MarketWatch, and I’ll walk you through the latest and greatest in digital assets this week so far.
Find me on Twitter at @FrancesYue_ to send feedback, or tell us what you think we should cover.
Crypto in a snap
Bitcoin /zigman2/quotes/31322028/realtime BTCUSD -2.60% went down 1% over the past seven days, trading at around $29,529 on Thursday, according to CoinDesk data. Ether /zigman2/quotes/108573964/realtime ETHUSD -2.37% lost 4.6% over the seven-day stretch to around $1,884. Meme token Dogecoin /zigman2/quotes/226077044/realtime DOGEUSD -1.60% slumped 5% while another dog-themed token, Shiba Inu /zigman2/quotes/231473891/realtime SHIBUSD -0.77% , declined 8% from seven days ago.
|Biggest Gainers||Price||%7-day return|
|Green Satoshi Token_BSC||$18.88||88.9%|
|Source: CoinGecko as of May 26|
|Biggest Decliners||Price||%7-day return|
|Source: CoinGecko as of May 26|
Ethereum rules it all?
Discussions have heated around layer-one blockchains, or the base networks, after popular blockchain Terra collapsed earlier this month. Terra was once the second largest blockchain for decentralized finance protocols in terms of total value locked, only behind Ethereum.
Paul Brody, global blockchain leader at Ernst & Young Global, said he expects Ethereum to eventually “take over everything,” though it has been facing competitions from other smart contract blockchains such as Solana /zigman2/quotes/229898318/realtime SOLUSD -1.31% , Avalanche /zigman2/quotes/235209965/realtime AVAXUSD +1.67% , Cardano /zigman2/quotes/226258619/realtime ADAUSD -0.58% and Algorand /zigman2/quotes/226447854/realtime ALGOUSD -1.83% .
Ethereum is the most reliable blockchain for development, according to Brody, though critics complained that the blockchain can be slow and expensive for transactions.
“We’re very selective at EY about which ecosystem to work in. We audit across many ecosystems, but we only do development in the Ethereum ecosystem,” Brody told Distributed Ledger in an interview. The firm uses Polygon, an Ethereum scaling platform, for its enterprise activities to lower transaction costs.
“Ethereum is just the largest ecosystem, right? If you’re going to be only good at one thing, you should be good at the one thing that has the biggest market,” Brody said. Ethereum also has “a lot of institutional maturity”, Brody added.
Brody said he does not expect to see a multichain future, where different blockchains co-exist and all contribute to the ecosystem. “People talk about multi-chain as if it was some kind of given, like oh, we’re all headed for a multi-chain future. That’s really strange,” Brody said. “We don’t have a multi-network Internet, we have TCP/IP over Ethernet.”
“Technology industry loves standards,” Brody said. “EVM is a standard, right? TCP/IP is a standard. Windows is a standard. It’s very rare that you have truly heterogeneous ecosystems, because that imposes a lot of overhead.”
In terms of bitcoin, Brody said he is unclear of what the future of the largest crypto is, as it hasn’t provided a compelling case to be used as a hedge against inflation. “More importantly, Bitcoin isn’t a developer ecosystem,” Brody said.
Brody also highlighted the importance of stablecoins and called for a “good regulatory model.”
“The truth is that the vast majority of people really want to transact in dollars,” Brody said. While ether will be used for covering transaction fees on the Ethereum blockchain, “for enterprises especially, the vast majority of transactions are going to be done in fiat currency-based stable coins,” according to Brody.
Regulators have been paying increasing attention to stablecoins, especially after TerraUSD, once the largest algorithmic stablecoin that is supposed to trade one to one against U.S. dollars, fell to as low as five cents at one point. Treasury Secretary Janet Yellen urged Congress to quickly pass a new regulatory framework , while Pennsylvania Sen. Pat Toomey, the top Republican on the Senate Banking Committee, held a press conference touting his legislation in this area.