Multicoin Capital co-founder Kyle Samani said on Sept. 21 that more crypto companies are likely to build on Solana rather than Ethereum, citing stronger usability and functionality. He argued that Solana’s market capitalization will overtake Ethereum’s during the current market cycle and said Ethereum’s edge as the default smart contract network for crypto companies may be weakening.
Samani also took a bearish view on Ethereum’s value capture. He said that 「basically no one really uses Ethereum anymore」 and argued that the network’s lead has been sustained mainly by stablecoins, as well as stablecoins borrowed against ETH collateral. In his words, Ethereum is 「a $300 billion to $400 billion asset」 whose value capture is questionable, possibly nonexistent, and showing no growth.
He added that he does not understand why investors are willing to hold ETH at its current valuation and said the market offers many other opportunities that are 「priced more reasonably」. Samani described Solana as 「the most fully featured network」 and said it can reduce operational complexity for companies looking to integrate their businesses. He also noted that while SOL’s market cap is still less than one-fifth of ETH’s, Solana’s weekly and monthly network fees have already exceeded Ethereum’s.
BlockBeats reported on Sept. 21 that Multicoin Capital co-founder Kyle Samani said more crypto companies will choose to build on Solana instead of Ethereum, driven by factors including stronger usability and functionality.
Samani said Solana’s market capitalization will surpass Ethereum’s 「during this market cycle」. He also said Ethereum’s advantage as the default smart contract network for crypto companies may gradually weaken.
According to Samani, 「basically no one really uses Ethereum anymore」. He said Ethereum has still managed to stay ahead mainly because of stablecoins, as well as stablecoins borrowed against ETH as collateral.
Samani said he is bearish on Ethereum’s ability to capture value. 「This is a $300 billion to $400 billion asset, but its value capture is in question, maybe it has none at all, and it has absolutely no growth.」
He also said he does not understand why investors are willing to hold ETH at its current valuation and added that there are many other opportunities in the market that are 「priced more reasonably」.
Samani said more crypto companies will move toward Solana and described Solana as 「the most fully featured network」, adding that it can help companies seeking to integrate their businesses reduce operational complexity.
He added that although SOL’s market capitalization is currently less than one-fifth of ETH’s, Solana’s weekly network fees and monthly network fees have both surpassed Ethereum’s.
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