In an interview with Weiss Rating, Juan M. Villaverde suggests that neither Ethereum nor Cardano will cease, but will exist simultaneously.
Earlier this week, Weiss Crypto Rating held a “You asked…” session on its Twitter account, debating the question “Do you see Cardano being a great play-maker in the cryptocurrency space in the future?”
– Weiss Crypto Ratings (@WeissCrypto) July 15, 2020
Juan M. Villaverde, an analyst at Weiss Crypto Rating, answered this question in two parts.
“Essentially it is an affirmative answer ”, as he explained that“ Cardano is already contributing a lot of work to the crypto space and has formalized it through adequate science and peer-reviewed academic research"
“They already are. They did more work than most other cryptocurrency companies, and that even includes Bitcoin. They formalized a lot of the science behind cryptocurrency and blockchain. They are the first who, before doing Proof Of Stake, did some research to prove whether Proof Of Stake makes sense or not. "
Villaverde then answered the hot question – the competition between Ethereum and Cardano. He suggested that both would end up coexisting, without canceling each other out, but he remains skeptical about their growth in the future.
“The question that everyone thinks is: will they be the next Ethereum. I think they will coexist. I don't think Ethereum is leaving. I don't think Cardano is leaving. Will it be that big? Will it have a thriving ecosystem with thousands, tens of thousands and even millions of people building things around it, using it every day …? It remains to be seen."
The DeFi race
The recent turmoil in the DeFi space seems to focus on the hype of the COMP token and the users who dump their assets in Compound to obtain these tokens. This effectively increases the value of Ethereum in the DeFi space by 100%. With Cardano being introduced into the DeFi space, there is also a significant amount of activity with the ADA token.
Villaverde's opinion may or may not be true, but there is every reason to speculate that DeFi will become more popular. There are many opportunities out there for capital, especially if value can flow across borders without any government regulation.
DeFi could provide crucial services to those who in the world do not have access to banks (Unbanked) – it provides a much needed financial system for people who cannot afford to pay or access traditional banks. In addition, with many industries awaiting the implementation of blockchain, a little competition can encourage the development of better technology.