š° 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 ETHās market cap in the current market cycle, and he even claims that ānobody is really using Ethereum anymore.ā After this remark, SOL jumped 8.21%.
Why is this news important?
SOLās market cap is still less than 4% of ETHās. Samaniās prediction sounds a bit crazy, but there may be logic behind it. As the āelder brother,ā Ethereum has recently hit bottlenecks in real-world use cases and trading volume. Meanwhile, SOLās high-performance scaling solutions (such as the Blast network) have long been seen as better suited for institutional applications. So why does Samani say ānobody uses ETHā?
- This doesnāt mean ETH has no usersāit means traditional DApp users and developers are being drawn to new opportunities brought by Web3.2. Ethereumās 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 yesāāthe number of people who donāt use itā might indeed be larger.
- From the perspective of institutional capital, SOLās high-performance features make Wall Street view it as a better fit for āthe next-generation financial infrastructure.ā If SOLās 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 SOLās upward momentum. But in the long run, itās more like a hint that Ethereumās dominance is being eroded.
- Impact on BTC/ETH: ETH may see a wave of sentiment pullback, but it wonāt collapse. After all, its size is too large, and with its deflationary characteristics, it wonāt easily fall. BTCās impact is even smallerāitās 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 SOLās āinstitutional applicationsā 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- Historical reference: When Bitcoin surpassed ETH in 2017, ETH also experienced similar controversy and volatility.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.
š” I think SOL still has momentum in the short term, but the prerequisite is that its ecosystem canāt 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
ā ļø 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 ETHās market cap in the current market cycle, and he even claims that ānobody is really using Ethereum anymore.ā After this remark, SOL jumped 8.21%.
Why is this news important?
SOLās market cap is still less than 4% of ETHās. Samaniās prediction sounds a bit crazy, but there may be logic behind it. As the āelder brother,ā Ethereum has recently hit bottlenecks in real-world use cases and trading volume. Meanwhile, SOLās high-performance scaling solutions (such as the Blast network) have long been seen as better suited for institutional applications. So why does Samani say ānobody uses ETHā?
- This doesnāt mean ETH has no usersāit means traditional DApp users and developers are being drawn to new opportunities brought by Web3.2. Ethereumās 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 yesāāthe number of people who donāt use itā might indeed be larger.
- From the perspective of institutional capital, SOLās high-performance features make Wall Street view it as a better fit for āthe next-generation financial infrastructure.ā If SOLās 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 SOLās upward momentum. But in the long run, itās more like a hint that Ethereumās dominance is being eroded.
- Impact on BTC/ETH: ETH may see a wave of sentiment pullback, but it wonāt collapse. After all, its size is too large, and with its deflationary characteristics, it wonāt easily fall. BTCās impact is even smallerāitās 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 SOLās āinstitutional applicationsā 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.
š” I think SOL still has momentum in the short term, but the prerequisite is that its ecosystem canāt 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
ā ļø Not investment advice; predictions are for reference only
