{"id":59456,"date":"2022-03-31T14:46:28","date_gmt":"2022-03-31T11:46:28","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=59456"},"modified":"2025-09-04T21:56:00","modified_gmt":"2025-09-04T18:56:00","slug":"grayscale-compares-ethereum-to-new-york-citys-urban-infrastructure","status":"publish","type":"post","link":"https:\/\/u1f987.com\/en\/grayscale-compares-ethereum-to-new-york-citys-urban-infrastructure\/","title":{"rendered":"Grayscale compares Ethereum to New York City&#8217;s urban infrastructure"},"content":{"rendered":"<p>The Ethereum blockchain is like New York \u2014 as vast, congested and expensive, yet boasting the richest ecosystem of applications. This was stated by specialists at Grayscale Investments, the digital asset management firm.<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">NEW REPORT: Thanks to <a href=\"https:\/\/twitter.com\/hashtag\/smartcontracts?src=hash&#038;ref_src=twsrc%5Etfw\">#smartcontracts<\/a>, services typically provided by expensive intermediaries such as banks, brokers, and custodians can be provided for a small fee on a blockchain in a fraction of the time. <a href=\"https:\/\/t.co\/vjXxfHK4N4\">https:\/\/t.co\/vjXxfHK4N4<\/a><a href=\"https:\/\/twitter.com\/search?q=%24ADA&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ADA<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24SOL&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$SOL<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24AVAX&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$AVAX<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24DOT&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$DOT<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24MATIC&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$MATIC<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24ALGO&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ALGO<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24XLM&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$XLM<\/a> <a href=\"https:\/\/twitter.com\/search?q=%24ETH&#038;src=ctag&#038;ref_src=twsrc%5Etfw\">$ETH<\/a><\/p>\n<p>\u2014 Grayscale (@Grayscale) <a href=\"https:\/\/twitter.com\/Grayscale\/status\/1509285352783106054?ref_src=twsrc%5Etfw\">March 30, 2022<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>In a recently published report, the firm\u2019s analysts compared popular smart-contract platforms. Grayscale Investments presented the document after the launch of <a href=\"https:\/\/u1f987.com\/en\/news\/grayscale-launches-fund-based-on-an-index-of-ethereum-competitors\">a fund based on the Ethereum competitors index<\/a>.<\/p>\n<p>According to the analysts, rising transaction costs on the second-largest cryptocurrency network have increased the appeal of alternative solutions. As of writing, on-chain fees for token swaps on the Ethereum blockchain exceed $12.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"605\" height=\"493\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/eth-48.png\" alt=\"In Grayscale Investments compared Ethereum to New York City's urban infrastructure\" class=\"wp-image-168951\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/eth-48.png 605w, https:\/\/u1f987.com\/wp-content\/uploads\/eth-48-300x244.png 300w\" sizes=\"auto, (max-width: 605px) 100vw, 605px\" \/><figcaption>Data: <a href=\"https:\/\/l2fees.info\/\">L2Fees<\/a>.<br \/><\/figcaption><\/figure>\n<p>Although platforms like Solana and Avalanche can deliver higher throughput and charge lower network fees, the equipment required to power them is more expensive.<\/p>\n<figure class=\"wp-block-image size-full\"><img loading=\"lazy\" decoding=\"async\" width=\"480\" height=\"325\" src=\"https:\/\/u1f987.com\/wp-content\/uploads\/platforms.png\" alt=\"In Grayscale Investments compared Ethereum to New York City's urban infrastructure\" class=\"wp-image-168952\" srcset=\"https:\/\/u1f987.com\/wp-content\/uploads\/platforms.png 480w, https:\/\/u1f987.com\/wp-content\/uploads\/platforms-300x203.png 300w\" sizes=\"auto, (max-width: 480px) 100vw, 480px\" \/><figcaption>Data: Grayscale Investments.\u00a0<br \/><\/figcaption><\/figure>\n<p>Analysts agreed with Dragonfly Research&#8217;s thesis on the similarity between blockchain platforms and modern cities.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cEthereum is like New York \u2014 it is enormous, expensive and congested in some areas. Yet it has the richest ecosystem \u2014 over 500 applications, with a total value exceeding $100 billion. This is more than ten times larger than that of any other competing network,\u201d the report says.<\/p>\n<\/blockquote>\n<p>According to Grayscale, despite high on-chain fees, users and developers believe Ethereum will continue to be the hub of innovation and liquidity thanks to the size of its ecosystem.<\/p>\n<p>In conclusion, the analysts emphasised that smart-contract platforms are \u201cnot capable of handling even 10% of global internet traffic\u201d at present. Meanwhile, Grayscale regards this segment as undervalued, as it could have a substantial impact on the traditional financial sector.\u00a0<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cWe view these platforms as investments in a decentralized future, where a dynamic ecosystem of applications offers a wide range of services\u201d, the specialists added.<\/p>\n<\/blockquote>\n<p>Earlier, in February 2022, Vitalik Buterin proposed <a href=\"https:\/\/u1f987.com\/en\/news\/vitalik-buterin-proposes-ways-to-cut-ethereums-transaction-costs\">solutions based on ZK-Rollups technology<\/a> to reduce transaction costs on Ethereum.<\/p>\n<p>Read ForkLog&#8217;s Bitcoin news in our Telegram \u2014 cryptocurrency news, prices and analysis.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Ethereum blockchain is like New York\u2014vast, congested, and expensive, yet home to the richest ecosystem of applications.<\/p>\n","protected":false},"author":1,"featured_media":59457,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[46,943,1138],"class_list":["post-59456","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-ethereum","tag-grayscale-investments","tag-opinions"],"aioseo_notices":[],"amp_enabled":true,"views":"7","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59456","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/comments?post=59456"}],"version-history":[{"count":1,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59456\/revisions"}],"predecessor-version":[{"id":59458,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/posts\/59456\/revisions\/59458"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media\/59457"}],"wp:attachment":[{"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/media?parent=59456"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/categories?post=59456"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/u1f987.com\/en\/wp-json\/wp\/v2\/tags?post=59456"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}