Ethereum's Advantage for Institutional Investors
While many new blockchains can boast higher transactions per second (TPS) metrics, institutional investors still prefer Ethereum. According to Kevin Lepsoe of ETHGas, the reason is simple - liquidity.
Traditional finance (TradFi) organizations are primarily interested in mature, liquid markets. And it is Ethereum, being the oldest and most developed public blockchain, that offers the largest ecosystem, depth of liquidity, and diversity of opportunities for institutional investors.
Despite the fact that other blockchains, such as Solana or Avalanche, have demonstrated impressive technological breakthroughs in scaling, they have not yet been able to compete with Ethereum in terms of maturity and liquidity. Engineers may be excited about the technical achievements of new blockchains, but for TradFi players, liquidity remains a key factor.
Thus, Ethereum remains the preferred choice, as it offers a combination of technological reliability, deep liquidity, and a diversity of opportunities, which is particularly important for conservative institutional investors seeking safe and proven solutions.