Crypto,  Market Thoughts

Solana Has Joined the Mount Rushmore of Crypto

Unless you’ve been in a medically induced coma for the past few months, you should be well aware that the Solana ecosystem alt coins have been going absolutely insane. 

BONK led the charge, going on a rocket fueled run that didn’t stop until BONK had a market cap of over $1 Billion dollars! 

Soon after, coins like WIF (Dog Wif Hat) and MYRO followed suite and went on crazy runs, going from below $100K in market cap and currently sitting in the hundreds of millions in market cap.

These are just a few of the coins that have done exceptionally well, but there are countless others. 

There are people in the crypto space who think this is just another flavor of the season. 

Last cycle we saw chains like AVAX and Harmony ONE have their times to shine, most notably with Defi Kingdoms, which still gives me PTSD to think about how much money I fumbled when that all fell apart. 

Those weren’t the only two alt chain ecosystems to have their day, but they’re the two that jump to mind. 

Obviously, there was Binance Smart Chain as well, which would be an even closer example, and it also fell to the wayside.

So, wouldn’t it make sense that Solana would follow the same script, and ride off into semi obscurity just like the others, once the hot ball of money has made its way through the chain?

Honestly, I don’t think so.

I can’t give you any metrics or hard numbers for why I think this is the case… it’s just a gut feeling.

I played around in those other ecosystems last cycle, and I can say with 100% certainty that it DID NOT feel like this. 

The other chains got their glory, but Ethereum was still king. 

This time around, we have Solana based tokens just running laps around their Ethereum based counterparts.

My favorite Ethereum meme coins like KEKEC, SPX and MOG have been pretty much completely stagnant since Solana season started. 

I’m fairly confident that if those coins had been launched on solana, with the insanely commited communities they all have, every single one of those tokens would be well over $100 million market caps.

I’ve ridden numerous coins from under $100k mc into the tens of millions so far on Solana. 

On a daily basis, we’re seeing new Solana meme coins breaking market cap barriers that used to be newsworthy last cycle. 

It could be argued that it’s all simply a natural consequence of crypto gaining more mainstream recognition, and non-crypto natives are increasingly entering the market with fresh capital, driving up the price of coins… but I don’t think that’s the entire story. 

Many people, especially Ethereum maxis, think this Sol season will be a flash in the pan and all of these new profits from the Solana ecosystem will make its way back to Eth; because that’s what has happened historically.

I believe something else is going on. 

I think the tourists have started to come back at just the right time (My followers started going up around the time Solana went vertical) to get onboarded and start trading on Solana defi, where they are paying almost nothing per transaction. 

I constantly see buy orders for $5, $15, $50 coming across the tape when I watch transactions on sol meme coins. 

Now ask yourself, do you think people with portfolios small enough that they’re buying $15 worth of a token are going to then move over to Ethereum, and start paying $50 – $100 PER TRANSACTION? 

The swapping fees cost more than their entire investment!

For us crypto natives, it’s feels normal. It’s the cost of doing business. 

But I believe these new market entrants, or even the tourists from last cycle, are not going to make their way back over to Ethereum.

At least not to the degree they did last cycle.

Getting them to pay those fees will be a very tough sell now that they’ve gotten a taste of degenerate gambling on a chain with nearly zero trading costs.

I don’t want to give the impression that I think Ethereum is going to fade into obscurity, or that coins on Eth will never pump again.

That would be middle curving the shit out of this.

What I see going forward is Solana and Ethereum coexisting. 

I’m not entirely sure what that will look like, but I don’t think we’ll ever see a time again where Ethereum has a monopoly on all of defi and on chain liquidity. 

I’ve seen the “Ethereum is Myspace” narrative floating around crypto twitter, but personally I find it hard to believe. 

If I had to guess, gun to my head, I imagine we’ll see Solana gain a lot of market share with meme coins and retail facing protocols such as payment processors, tipping functions, etc. 

No one is going to use a crypto token to buy a $20 meal if the cost just to make that transaction is another $20 on top of the meal. 

Maybe Ethereum will be more of a backend product. Something used to build protocols and tools by companies, and not so much something the general consumer will interact with on a daily basis (at least knowingly). 

To say it simply, I think both Solana and Ethereum are here to stay.

After this cycle, people will be talking about the “Big 3” when they discuss crypto. 

Some people who read this will think I’m being a retarded moon boy for thinking ETH won’t be the king of smart contracts forever… simply because it always has been.

The thing that often gets forgotten, however, is that this industry is still in its infancy. 

Just because a certain protocol reigned supreme for a time, doesn’t mean that it will hold a monopoly forever.

As the technology advances, and the industry matures, the landscape will change.

The people who are willing to embrace new paradigms and evolve with the market will be rewarded handsomely, while those who dig their heels in and dogmatically tether themselves to any one protocol run the risk of getting left behind, as they watch others become rich from this industry. 

That’s about all I have for this one. Hit me up over on twitter @Frac_Sauce.

Until next time, 

Fractal

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