Widely followed economist Alex Krüger believes one Ethereum (ETH) rival is undervalued as its ecosystem buzzes with activity.
In a new interview with Bitcoin Suisse’s podcast Verified, Krüger says that Solana (SOL) has a livelier ecosystem than ETH’s and also greater potential. He predicts long-term upward momentum for SOL.
“I think that Solana is absolutely massive and it’s under price relative to ETH. What’s happening in Solana is absolutely incredible. And I think everybody should be long. It’s the perfect chain for retail risk taking. Let me quantify this.
Memecoin WIF is doing about $40-$50 million in daily trading volume. They’re basically making $100,000 a day on fees. That’s all retail and you turn around and you go to ETH and there is not a single memecoin on the ETH side doing more than $3 million a day. It is product market fit. The retail legions, Solana is perfect for them. ETH is absolutely the opposite.
There’s so many other chains but this is the thing, there’s only two real chains with smart contracts that right now have a strong native community. There’s ETH and Solana, nothing else. Everything else as of now is dominated by hard money. ETH and SOL, they have natives that live there. So some people in SOL don’t know anything outside SOL. Then back to SOL, there’s a lot of very good applications that don’t exist in ETH, because of speed and how cheap it is, for example Hivemapper. I think there’s going to be so much more innovation happening in SOL that cannot happen in ETH.”
Solana is trading for $115.80 at time of writing, up nearly 4% in the last 24 hours.
The economist also thinks that the broader crypto market will remain in an uptrend for a while.
“I still think the valuations, if you’re really bullish as I am, the optimal path is to be investing as much as possible rather than trading, especially given that valuations in crypto have not yet adjusted from 2023 levels.”
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