đ° Why are miners suddenly not mining ETH? Is SOL really about to take down Ethereum this time?
Kyle Samani, co-founder of Multicoin Capital, just fired off a statement on CoinTelegraph: he believes SOL is likely to surpass ETHâs market cap in the current market cycle, and he even claims that ânobody is really using Ethereum anymore.â After this remark, SOL jumped 8.21%.
Why is this news important?
SOLâs market cap is still less than 4% of ETHâs. Samaniâs prediction sounds a bit crazy, but there may be logic behind it. As the âelder brother,â Ethereum has recently hit bottlenecks in real-world use cases and trading volume. Meanwhile, SOLâs high-performance scaling solutions (such as the Blast network) have long been seen as better suited for institutional applications. So why does Samani say ânobody uses ETHâ?
- This doesnât mean ETH has no usersâit means traditional DApp users and developers are being drawn to new opportunities brought by Web3.2. Ethereumâs congestion and gas fee problems are pushing applications that need low costs and high throughput toward SOL and other Layer 1 networks. Think about it: with an ETH market cap of $2.7K, if it relies on only a few top applications like Bitcoin does, then yesââthe number of people who donât use itâ might indeed be larger.
- From the perspective of institutional capital, SOLâs high-performance features make Wall Street view it as a better fit for âthe next-generation financial infrastructure.â If SOLâs ecosystem can absorb this demand, surpassing ETH in market cap is simply a matter of time.
Impact on the market
In the short term, this news will likely continue to fuel SOLâs upward momentum. But in the long run, itâs more like a hint that Ethereumâs dominance is being eroded.
- Impact on BTC/ETH: ETH may see a wave of sentiment pullback, but it wonât collapse. After all, its size is too large, and with its deflationary characteristics, it wonât easily fall. BTCâs impact is even smallerâitâs mainly a safe-haven and a consensus currency right now.
- Impact on market structure: If SOL truly doubles, it could lift a batch of competing L2/L3 coins along with it, such as Arbitrum and Avalanche, which may also benefit from the same wave. Regulation may also start paying attention to SOLâs âinstitutional applicationsâ narrative.
- Historical reference: When Bitcoin surpassed ETH in 2017, ETH also experienced similar controversy and volatility. This time, if SOL can hold its ground at $150, it could draw in even more institutional players.
đĄ I think SOL still has momentum in the short term, but the prerequisite is that its ecosystem canât rely only on GameFi. If it can attract traditional finance or DeFi upgrades onto SOL, then $200 is possible. But if the GameFi tide retreats, or if Ethereum suddenly finds a new use case explosion, then this outlook will be invalid.
This article has no sponsorship from any project, and the author does not hold any of the assets mentioned in the text.
According to CoinTelegraph
â ď¸ Not investment advice; predictions are for reference only
Kyle Samani, co-founder of Multicoin Capital, just fired off a statement on CoinTelegraph: he believes SOL is likely to surpass ETHâs market cap in the current market cycle, and he even claims that ânobody is really using Ethereum anymore.â After this remark, SOL jumped 8.21%.
Why is this news important?
SOLâs market cap is still less than 4% of ETHâs. Samaniâs prediction sounds a bit crazy, but there may be logic behind it. As the âelder brother,â Ethereum has recently hit bottlenecks in real-world use cases and trading volume. Meanwhile, SOLâs high-performance scaling solutions (such as the Blast network) have long been seen as better suited for institutional applications. So why does Samani say ânobody uses ETHâ?
- This doesnât mean ETH has no usersâit means traditional DApp users and developers are being drawn to new opportunities brought by Web3.2. Ethereumâs congestion and gas fee problems are pushing applications that need low costs and high throughput toward SOL and other Layer 1 networks. Think about it: with an ETH market cap of $2.7K, if it relies on only a few top applications like Bitcoin does, then yesââthe number of people who donât use itâ might indeed be larger.
- From the perspective of institutional capital, SOLâs high-performance features make Wall Street view it as a better fit for âthe next-generation financial infrastructure.â If SOLâs ecosystem can absorb this demand, surpassing ETH in market cap is simply a matter of time.
Impact on the market
In the short term, this news will likely continue to fuel SOLâs upward momentum. But in the long run, itâs more like a hint that Ethereumâs dominance is being eroded.
- Impact on BTC/ETH: ETH may see a wave of sentiment pullback, but it wonât collapse. After all, its size is too large, and with its deflationary characteristics, it wonât easily fall. BTCâs impact is even smallerâitâs mainly a safe-haven and a consensus currency right now.
- Impact on market structure: If SOL truly doubles, it could lift a batch of competing L2/L3 coins along with it, such as Arbitrum and Avalanche, which may also benefit from the same wave. Regulation may also start paying attention to SOLâs âinstitutional applicationsâ narrative.
- Historical reference: When Bitcoin surpassed ETH in 2017, ETH also experienced similar controversy and volatility. This time, if SOL can hold its ground at $150, it could draw in even more institutional players.
đĄ I think SOL still has momentum in the short term, but the prerequisite is that its ecosystem canât rely only on GameFi. If it can attract traditional finance or DeFi upgrades onto SOL, then $200 is possible. But if the GameFi tide retreats, or if Ethereum suddenly finds a new use case explosion, then this outlook will be invalid.
This article has no sponsorship from any project, and the author does not hold any of the assets mentioned in the text.
According to CoinTelegraph
â ď¸ Not investment advice; predictions are for reference only
