- Former Goldman Sachs exec Raoul Pal said Ethereum offered a great investment opportunity in 2018, but nobody cared.
- Pal said that despite of its outages and the recent FTX episode, Solana is doing well.
- Raoul added that Solana has a ‘consumer feel’ and hence, is strong.
In his recent “Ask Me Anything” livestream, founder and CEO of Global Macro Investor and former Goldman Sachs executive, Raoul Pal compared Solana’s performance with Ethereum’s back in 2018, when it was down 97%. He added that back then, Ethereum offered a great investment opportunity but nobody cared, and the same goes for Solana currently.
Pal elaborated that Solana (SOL) is currently performing like Ethereum (ETH), which slumped by more than 90% in 2018. Solana was trading at a high this month of $38.74 but dropped to a low of $12.21 following the FTX debacle. Solana is trading at $11.81 at the time of writing.
I really like Solana, and I understand that the chain breaks. I also understand that they are fixing it. I also understand that’s a no-no. And one of the elements was, it was concentrated in its ownership because of FTX. They are now able to liquidate it, and so you’re getting rid of one of the issues.
Pal explained that irrespective of its outages and the recent FTX episode, Solana is doing well. Citing the reason for this inference, Pal added that cryptos work on narratives. As Bitcoin’s narrative is digital gold, Ethereum’s is distributed over the internet for Web3. Solana has the narrative of the consumer chain.
Additionally, Pal noted that SOL’s deals with Google, Meta bring out the cryptocurrency’s “consumer feel” to users.
When asked about if he thinks Bitcoin and Ethereum will die in future. Pal added that as per Metcalfe’s law, both the networks haven’t really grown a lot since 2021, maybe even the end of 2020.
However, for them to die, Web3 must stop developing, and the exponential trend of adoption must also completely stop, which seems highly unlikely, Pal concluded.