Jan van Eck, CEO of VanECK, suggests the cryptocurrency industry should prioritize reducing transaction fees over focusing solely on Bitcoin, Ethereum, or their exchange-traded funds (ETFs). Speaking on April 10, van Eck highlighted the unpredictable nature of fees on Bitcoin and Ethereum, emphasizing the importance of affordable transaction costs.

Van Eck pointed to layer 2 blockchains and the Solana network as examples of platforms offering lower transaction costs. He argued that the high fees on Bitcoin and Ethereum make them impractical for regular use, asking, "Who would use them with such hefty fees?"

Gas fees on Bitcoin and Ethereum have been a longstanding issue, often spiking during high demand and making transactions unfeasible. Layer 2 solutions, such as Bitcoin's Lightning Network and Ethereum rollups, aim to alleviate these problems by reducing network congestion and lowering fees.

Solana, a layer 1 protocol, offers faster speeds and cheaper transaction fees compared to Bitcoin and Ethereum. Van Eck praised these alternatives for their efficiency and predictability, suggesting they will be foundational for future developments in the crypto space.

Despite Solana's advantages, the network has faced technical issues, including a recent incident where 75% of non-vote transactions failed due to an "implementation bug."

In his interview, van Eck also discussed the likelihood of Ethereum ETFs being approved by the May deadline. He noted that his firm has not received any communication from the U.S. Securities and Exchange Commission (SEC) since filing for a spot ETF product, indicating that approval is unlikely without proper disclosure documents.

VanECK's Ether ETF application awaits the SEC’s decision, with a current deadline of May 23.