Chainalysis CEO Michael Gronager says that fundamental changes in Ethereum are contributing to the growth of other crypto assets, particularly in one subsector.
In an interview on Bloomberg Technology, the head of the blockchain data platform explains that Ethereum (ETH) has seen large price appreciation over the past few weeks largely due to protocol changes and growth in the network, as well as decentralized finance (DeFi).
“Basically we see Bitcoin…we’ve seen Ethereum grow a lot over the last couple of weeks, and then about a month ago we saw bigger platform changes to Ethereum. The network got stabilized [and] got better in various ways. So I think that facilitated more trust in Ethereum as a whole.
According to DeFi Pulse, 120 of the largest DeFi platforms reside on Ethereum, highlighting the correlation between the emerging crypto subsector and the leading smart contract protocol. DeFi Pulse also shows that the total value locked in the decentralized finance space is currently at an all-time high, closing in on $100 billion.
Along with Chainalysis, Gronager is also co-founder of the crypto exchange platform Kraken. The interviewer notes how Kraken CEO Jesse Powell sees a bullish future ahead for Bitcoin, predicting a breach past $100,000 before the end of the year.
“I would say that for most of the cryptocurrencies, like Bitcoin, Ethereum, the more stable ones, we’re definitely seeing a trend where they grow year over year, and sometimes they grow faster than others. Sometimes it’s a bull market. Sometimes it’s a bear market. In the bear market, a lot of interesting things are being built and that basically facilitates a new bull market.