"Institutions still favor Ethereum…liquidity over performance"

Even as high-performance blockchain networks billed as “Ethereum killers” continue to emerge one after another, a view has been raised that institutional investors still prefer Ethereum (ETH) above all.

On the 28th (Korea time), Kevin Rapsо, founder of Ethergas (GWEI), said, “Transactions per second (TPS) is merely an important metric for engineers and developers—it is not what moves capital,” adding, “Capital and stablecoins (crypto assets pegged to fiat currency) are on Ethereum, and traditional finance looks to where liquidity is.”

According to DeFiLlama, the market capitalization of Ethereum-based stablecoins is about $160.4 billion, the largest among blockchain networks.

Ethereum has faced persistent criticism over performance in recent years as new high-performance blockchain networks have emerged. However, Rapsо said, “Institutions managing large pools of capital prioritize deep liquidity and low slippage,” and assessed that “Ethereum is a market that can absorb large trades without distorting prices.”

That said, it is true that opinions are split on whether institutional money will remain only on Ethereum. Marcin Kazmierczak, co-founder of RedStone, said, “Institutions are expanding aggressively into Ethereum, but at the same time they are also looking at Solana (SOL), and because they place a very high importance on privacy, they are showing strong interest in Canton (CC) as well.”