An investor who accurately called Bitcoin’s (BTC) 2022 bear market bottom says he’s extremely bullish on one smart contract protocol.
Venture capitalist and crypto investor Chris Burniske tells his 285,400 followers on the social media platform X that Ethereum (ETH) has cemented its status as a “credible settlement layer for crypto assets.”
According to Burniske, other layer-1 protocols such as Solana (SOL) and Avalanche (AVAX) are at a point where they’re contending to reach Ethereum’s level.
“Despite being most vocal about SOL in the last bear given its distressed levels, and the already known problems being highlighted regarding Ethereum UX (user experience), I’m still very long ETH and a major believer in the ecosystem.
Being a settlement layer isn’t a path to success, it’s the result of success.
Ethereum at the moment is the only credible settlement layer for cryptoassets that crypto has, and that advantage will likely reinforce itself over time.
Avalanche, Bitcoin, Celestia, Polkadot and Solana are the currently liquid ‘contending settlement layers’ that I’m paying most attention to – but there are others too that are younger, and some that haven’t launched yet.”
Although the Placeholder Capital partner thinks Ethereum has a big edge over its competitors, he acknowledges that the leading smart contract platform is far from perfect and that well-known technical concerns still need to be ironed out over time.
“The question is how fast will ETH layer-2s fix this problem. Then we have the bridging from layer-1 to layer-2, and interoperability between layer-2s problem.
These problems will also be fixed, but it will all take time. Meanwhile, Solana and friends will be more performant, but hit scale fails of different kinds, and have to modularize. Everyone races toward the same outcome, they just take different paths.”
At time of writing, Ethereum is trading at $3,530, down over 5% in the last 24 hours.
Generated Image: Midjourney
