When Solana experienced a crash immediately after hitting a new all-time high on September 9th, traders and experts tried to understand the event. On “The Best Business Show,” investment expert Anthony Pompliano interviewed Kyle Samani, co-founder and managing partner of Multicoin Capital, to talk about the rising star who turned out to be a meteor.
From 4 cents to over $ 200
Pompliano started with a discussion about Multicoin Capital’s investment in Solana. He calculated that the initial investment had increased approximately 3,750 times since the first round when a SOL was at $ 0.04.
For his part, Samani said:
“Solana is growing extremely fast today. Users are taken on board, assets are issued, stablecoins are going in – all of those things. Look at the past nine days: it’s just a vertical line from a billion assets to 10 billion. “
While listing possible factors in Solana’s success, Samani cited Solana’s speed and network, its Metaplex NFT platform, SOL’s price hike, and stablecoins issued.
Inevitably, Pompliano brought up the Solana crash – although he admitted calling it “hilarious” in the context of the growth of the alto coin. Samani’s answer was surprising, however. He claimed he was trying to ignore prices and was not referring to Coin Gecko or Coin Market Cap. Rather, he preferred to focus on the Solana network and its growth. He further explained
“Our time horizon is measured in years, not weeks or months. The question we will always ask ourselves is whether this network is put together quickly enough? And if you’re really into developer activities, user onboarding, and the flow of money in the system. . .all these things are piling up at an amazing rate right now, and I don’t think that’s going to slow down. “
Additionally, the following infographic shows data related to Solana transfers.
We have prepared a new #infographic on @Solana transfers 👏 It is twice the sum of the assets transferred to other networks ↔️
How fast do you think we will hit the $ 300 million milestone ❓ Let us know pic.twitter.com/SIZr0rX8Q7
– Allbridge (@Allbridge_io) September 16, 2021
Could Solana Kill Ethereum?
Samani spoke about Metaplex and how the NFT platform came into being during the NFT boom in summer 2021. He pointed to Ethereum’s high gas fees and how many users saw Solana as a faster alternative. Even so, Samani admitted that he thought it was “unlikely” that Solana will oust Ethereum. Instead, he suggested that the two would likely co-exist.
Samani also addressed a frequent criticism of Solana related to its centralized nature due to the number of validators and the expensive hardware required to run it.
When it comes down to it, most alt coins are just like that. A small group of people can just shut down the network on a whim.
Only #Bitcoin is really decentralized and not controlled by any group. https://t.co/V7lXfhjuMN
– Vijay Boyapati (@real_vijay) September 14, 2021
Calling the criticism “valid” but “irrelevant”, Samani noted that the compromise meant better performance for users and reiterated the rapid growth of the network.
At the time of going to press, there were between 974 and 1000 validators on the Solana mainnet. Samani’s assessment of the altcoin was simple but memorable. He said,
“I don’t think there will be another Solana.”