- VanEck’s CEO prioritizes transaction fees over Bitcoin and Ethereum ETFs in the crypto industry.
- Solana and Layer 2 solutions offer cheaper and more predictable transaction costs for developers.
- Jan Van Eck expresses doubt over the approval of Ether ETFs, citing the SEC’s lack of responsiveness.
In a recent interview, Jan van Eck, the CEO of the global investment firm VanEck, emphasized the significance of transaction fees within the cryptocurrency industry. The CEO suggested that they warrant more attention than the ongoing discussions surrounding Bitcoin (BTC) and Ethereum (ETH) ETFs.
Van Eck underscored the unpredictability of transaction fees on the Bitcoin and Ethereum blockchains, stating that it presents challenges for developers aiming to build applications within these ecosystems. He highlighted the emergence of alternatives like Solana and Layer 2 solutions, which offer more affordable and predictable transaction costs.
During his interview, Van Eck said that,
The most important story of 2023 is simply that transaction costs are now available at affordable rates through Solana or the so-called Layer 2s.
Drawing a comparison for non-crypto enthusiasts, he likened high gas fees on Ethereum to fluctuating fuel prices, showing the level of importance of the effect of high gas fees in day-to-day markets.
Solana, often touted as an Ethereum competitor, boasts cheaper costs and faster transaction speeds. Layer 2 solutions, such as Ethereum rollups and the Lightning Network for Bitcoin, address scalability issues by operating atop Layer 1 chains.
Van Eck expressed optimism about the potential for developers to leverage these lower transaction fees, enabling the creation of more practical applications. He foresees a shift towards the utilization of scalable databases with predictable costs in the coming years, paving the way for substantial advancements in the crypto space.
“We’ve filed our S1 and we haven’t heard anything. So that’s kind of a sign. It won’t happen without getting the disclosure documents in order,” remarked Van Eck, suggesting potential hurdles in the approval process for Ether ETFs.
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