One anonymous crypto investor says Ethereum (ETH) rival Solana (SOL) still has what it takes to compete with the top smart contract platform.
In a new InvestAnswers video update, the anonymous host tells his 444,000 YouTube subscribers that ETH’s market cap is worth 40 times more than SOL, but wonders if ETH is truly 40 times better than SOL.
“Ethereum is 40x more valuable than Solana.
The market cap is 40x larger, and if you include all the layer twos (I got Optimism, Matic, Arbitrum, etc.) it’s a lot more. It’s like 50 x larger. The question is, does all the data make sense?
My take is that my eighth position is four times larger than my Solana position, and my Bitcoin position is four times larger than my ETH position. This gives you an idea of how I structure things.
But if Solana can stay afloat and if there is no SOL killer to come out better, cheaper, faster, and scale more, and have more DApps (decentralized apps), then based on this data, Ethereum could have a challenger ahead…
Just ask yourself, is Ethereum 40x better because it has 40x the market cap?”
While the analyst still thinks Ethereum is the smart contract of the future, he still thinks Solana can carve out its own niche and survive in the market.
“I think the future will be very simple. You’re going to have a consumer chain that also runs big businesses like stock exchanges, etc. And you’ll have Ethereum as the big heavy chain that does big heavy transactions, not unlike Bitcoin.
Either way, Solana is still there. It’s still standing.”
ETH is worth $1,852 at time of writing while SOL is trading for $17.68.
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