Why 'Expensive' Ethereum Will Dominate Institutional DeFi

Why 'Expensive' Ethereum Will Dominate Institutional DeFi

With over 100 layer-2 (L2) blockchains, you’re excused for thinking Ethereum is too expensive and too slow. But ask any institution preparing to settle a $500 million interest rate swap where they'll build, and the answer is Ethereum. The reason reveals everything about how institutional DeFi is likely to develop.The metrics that matter for institutional adoption are entirely different to retail. While retail users flee Ethereum's transaction fe…

Why Ethereum’s High Fees Are Driving Institutional DeFi Adoption

Ethereum may face criticism for high transaction fees and slower speeds compared to emerging layer-2 blockchains, but for institutions managing billion-dollar transactions, these traits are a strength, not a weakness. When settling a $500 million interest rate swap, security and reliability outweigh cost considerationsmaking Ethereum the preferred settlement layer. Retail traders chasing memecoins gravitate toward cheaper, faster alternatives, b…