• Zeng Jiajun, a key contributor at Soul Pockets, mentioned the cryptocurrency market remains to be in its early phases.
• Vitalik Buterin believes that the reasonably priced L2 resolution will see much more funds stream into cryptocurrency wallets.
• Buterin mentioned low transaction charges are important for cryptocurrencies to mature.

Ethereum co-founder Vitalik Buterin sees a robust future for decentralized finance (DeFi) as transaction charges fall. Buterin believes that reasonably priced Layer 2 (L2) options can be key to boosting DeFi adoption, attracting extra capital, and even attracting conventional monetary establishments.

This perception got here as half of a bigger dialog sparked by Zeng Jiajun, a key contributor at Soul Pockets. Jiajun famous that the cryptocurrency market remains to be in its infancy. He famous that Bitcoin (BTC), the world's largest digital asset by market cap, dominates with a market share of over 50%. Its $1 trillion valuation far exceeds the worth of altcoins as a complete, regardless of the variety of initiatives with huge potential.

Jiajun acknowledged that whereas half of Wall Road holds Bitcoin, there’s large potential for adoption of different digital property. He emphasised that vital milestones within the blockchain business, similar to the mixing of Ethereum and the launch of L2 options similar to Arbitrum, zkVM and zkEVM, have solely occurred in the previous couple of years, including:

“BTC's over 50% dominance is strictly why we have been capable of get in early. 'Cryptocurrency' is extra of a 'blockchain' than a 'foreign money'.”

Reasonably priced L2 to drive development

Jiajun additional famous that whereas $20 billion has flowed into the digital asset sector over the previous 4 years, this pales compared to the greater than $200 billion invested in synthetic intelligence over the identical interval.

Buterin responded by suggesting that the arrival of reasonably priced L2 options might change that, saying the Ethereum co-founder has been arguing since 2020 that DeFi’s potential past high-value transactions hinges on low transaction charges.

Additionally learn: Ethereum’s Vitalik Buterin’s imaginative and prescient for user-friendly crypto buying and selling features momentum

Buterin added that it was solely since March that many L2 options have emerged with decrease charges, suggesting that we may even see extra funding pumped into these networks because the market matures in the long run.