Ethereum ETF Approval Unlikely to Pave Way for Other Crypto ETFs: Interview

Sujha Sundararajan

Last updated:

June 11, 2024 00:56 EDT | 2 min read

LightLink, an Ethereum Layer-2 blockchain, last week announced the integration of its Hummingbird client with Celestia’s Mainnet. The launch will significantly improve scalability and reduce transaction fees for Lightlink’s users, the platform wrote in its blog.

LightLink, in April, secured $6.2 million in funding during an extended seed round. The startup extended its seed round following high demand from investors. The funding was backed by several institutional and individual investors.

Further, LightLink reportedly records about 115,000 daily transactions, with a strategic alliance with Animoca Brands. The platform’s native token called LL, recently debuted through Fjord Foundry’s Liquidity Bootstrapping Pool (LBP).

Speaking with CryptoNews, Roy Hui, CEO & Co-founder of LightLink, shares how gasless Ethereum Layer-2 solutions accelerate Web3 adoption.

“Gasless transactions significantly enhance the user experience, lowering entry barriers and alleviating users of complexities, thus simplifying onboarding and retention efforts,” he noted.

Mr Hui said that the emergence of Layer-2 solutions came with better throughput, faster ution, and lower cost. This in-turn led to decreased failures, increased support for concurrent users, and nearly instantaneous interactions.

Speaking about LightLink’s, he said that the company’s focus is to “devise strategies to onboard a larger number of users into the eco.”

Additionally, Gas abstraction stands as the company’s flagship feature, Mr Hui added. The feature introduces a novel transaction fee model, which allows users to engage with smart contracts without the necessity of paying fees in ETH or other native tokens.

“We will continue our ongoing research and development efforts aimed at enabling more enterprise projects to embrace Web3 technologies and providing gasless Web3 services to their customers.”

Ethereum: “A Secure, Permanent Storage Solution”

Roy Hui stressed that Ethereum represents the “future of computations.”

“It functions as a global registry and a secure, permanent storage solution,” whereas, Bitcoin is a store of value, a blockchain eco alternative to gold, he added.

Last month, the US Securities and Exchange Commission (SEC) finally approved the anticipated sale of spot Ether Exchange-Traded Funds (ETFs). The SEC’s approval of spot Ether ETFs follows the approval of Bitcoin ETFs in January this year, which saw Bitcoin’s price rise to an all-time high.

According to Mr Hui, Ethereum is witnessing experimentation across various industries, shaping the future of gaming, finance, and digital assets.

“The approval of the ETH ETF acknowledges its value as fuel to power computations and storage with little speculation involved. The introduction of an ETH ETF is unlikely to pave the way for numerous other crypto ETFs.”

He believes that this is due to Ethereum’s status as one of the largest ecos and economies within the crypto space, with highest market capitalization.

“With its strong fundamentals, Ethereum is positioned as a long-term infrastructure solution for our planet, with no direct competitors in this domain,” Mr Hui noted.

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