Ethereum (ETH) is second only to Bitcoin (BTC) by market cap, and its smart chain technology was a game-changer. Now, with the fast pace in the industry and some of the ETH-related complications such as scalability, fees etc, new contenders are challenging ETH for its throne. The interviewee here even considers one of them to be the next Bitcoin.
In search of the next top altcoin
Sam Bankman-Fried, the founder of the FTX crypto exchange added support for two cryptocurrencies when competing with the biggest token. The billionaire, while speaking to Kitco News, expressed an optimistic account of Solana (SOL). He believes Solana had the potential to step up to the Bitcoin (BTC) mass adoption level. In addition, he also discussed the potential of Avalanche (AVAX).
In order to compete with ETH, a token needs different aspects. One needs to look at what it would take to have 1 billion people use cryptocurrency and blockchain infrastructure. Meanwhile, people end up using blockchain infrastructure at the same level they use social media or finance today. Needless to say, it’ll create millions of transactions per second. The young entrepreneur sees SOL’s and AVAX’s blockchains scaling to that level.
He added:
I think Solana has a chance to do it, which is really exciting. I think there are other tokens out there as well that aim to scale up a bit, and Avalanche is one of them.
Let’s segregate this a bit. Talking first about the #5th largest token. When asked if he thought Solana could exceed Ethereum’s market cap, Bankman-Fried leaves it up in the air, saying, “It could happen. It could never happen.” But, the sheer potential provides a wealth of opportunities.
“[Solana] has the potential to host DeFi (decentralized finance) applications for hundreds of millions to billions of people on top of that with a giant composable ecosystem. Again, that doesn’t mean it will necessarily happen, but it could happen, and I think it’s really exciting.
Not only ETH, but Solana also challenged the largest crypto coin, BTC as well. Just recently, SOL’s returns outperformed that of BTC’s.
Another project he talked about in Avalance. The No.11 ranked token has recorded impressive stats to underpin its position. Consider the tweet below:
The flagship token was up around 1% in 24 hours, was trading above the $108 mark. Earlier, it pushed DOGE to mark its entry in the top 10 cryptocurrency list. Quite remarkable indeed.
Global crypto outlook
Said interview also touched on the contrast between bullish and bearish races. It is a fact that there will always be more falls and more bull runs. And in the next few years, he expects to see “substantial institutional adoption of cryptocurrencies.”
Nevertheless, projects with loyal followers and important use-cases remain undeterred from the correction.
“Projects that have real adoption, or potential for real adoption, are the ones loyalists will support, even during bear markets.”
Quite a contrast for a certain “hype-furled” meme tokens. For instance, speculations around SQUID tokens. It was affiliated with the famous Netflix show ‘Squid Games’. Allegedly, people lost their life’s savings after the ecosystem pulled the rug from underneath them.
Bankman-Fried warned users to invest according to their risk appetite and not to get carried away by making gains. It is necessary to verify the distribution of the supply of an ecosystem token. One of the reasons this meme-coin failed.
