Traders and experts tried to make sense of the crash that occurred shortly after Solana reached a new all-time high on September 9. Investment expert Anthony Pompliano spoke with Kyle Samani, co-founder and managing partner at Multicoin Capital, on “The Best Business Show” about the rising star-turned-meteor that Solana has become.
From four cents to more than $200
Pompliano kicked things off by talking about Multicoin Capital’s investment in Solana. He calculated that since the first round, when one SOL was $0.04, the initial investment had increased by roughly 3750 times.
Samani, for one, stated,
“Today, Solana is expanding at a breakneck speed. Users are being onboarded, assets are being issued, and stablecoins are being incorporated – all of this is happening. Take a look at the last nine days: it’s just a vertical line from, say, a billion to ten billion in assets.”
Samani cited Solana’s speed and network, its NFT platform Metaplex, the rise in SOL’s price, and the stablecoins issued as possible factors for the company’s success.
Network > Price
Pompliano had to bring up Solana’s crash, though he admitted that calling it that was “hilarious” in the context of the alt coin’s rise. Samani’s response, on the other hand, was unexpected. He claimed that he tried not to think about prices and that he didn’t use Coin Gecko or Coin Market Cap. He preferred to concentrate on Solana’s network and its expansion. He went on to say,
“We have a time horizon of years, not weeks or months. So, you know, the question we’ll always ask ourselves is, is this network compounding at a fast enough rate? And if you look at developer activity, user onboarding, and system dollar flow, all of those things are compounding at an incredible rate right now, and I don’t think that’s going to change anytime soon.”
In addition, the infographic below shows data on Solana transfers.
We've prepared a fresh #infographic about the @Solana transfers 👏 As you can see, the tendency of higher inflows persists. It is twice as large as the total of assets transferred to other networks ↔️
How soon do you think we will cross the $300M milestone ❓ Let us know pic.twitter.com/SIZr0rX8Q7
— Allbridge (@Allbridge_io) September 16, 2021
Could Solana be the end of Ethereum?
Samani discussed Metaplex and how the NFT platform was created during the summer of 2021’s NFT Boom. He mentioned Ethereum’s high gas fees and how many people saw Solana as a faster option. Even so, Samani admitted that he thought Solana’s ability to displace Ethereum was “improbable.” Instead, he predicted that the two would coexist.
Samani also addressed a common complaint about Solana’s centralized nature, which stems from the large number of validators and expensive hardware required to run it.
When it comes down to it, most alt-coins are exactly like this. A small group of people can just shut down the network on a whim.
— Vijay Boyapati (@real_vijay) September 14, 2021
The criticism was “valid,” but “irrelevant,” according to Samani, who noted that the trade-off meant better performance for users and emphasized the network’s rapid growth.
On the Solana mainnet, there were between 974 and 1000 validators at the time of publication. Samani’s take on the alt coin was straightforward but memorable. “, he explained.
“I don’t believe there will be another Solana.”