Mechanism co-founder Andrew Kang pointed out that instead of going long on ETHBTC, SOLBTC (or SOLETH) has become a better choice.
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Trailing behind BTC, is ETH too “stable”?
L2, re-staking, modularity – aren’t these bullish for ETH?
The third giant outside of ETH and BTC: SOL
Trailing behind BTC, is ETH too “stable”?
Andrew Kang first mentioned that over the past 6-7 years, ETH has replaced BTC, and more investors and institutional funds have regarded ETH as their preferred currency. However, over time, ETH has gradually become a safe and low-volatility asset, leading to a decrease in the number of people holding ETH.
L2, re-staking, modularity – aren’t these bullish for ETH?
Andrew Kang believes that narratives such as L2, re-staking, and modularity seem bullish for ETH. However, these project characteristics and innovations have also put significant pressure on Ethereum, as investors continue to convert ETH into the aforementioned new projects. On the other hand, SOL does not have these issues and has successfully overcome multiple challenges to become a leading L1 public chain.
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The third giant outside of ETH and BTC: SOL
He pointed out that conservative investors who previously held a large amount of BTC and ETH now view SOL as a stable and secure asset. He believes that this is the transitional phase for SOL to become a mainstream asset.
Andrew Kang stated:
The definition of madness is when SOLBTC (or SOLETH) is clearly the better trade during a bull market, but you keep trying to go long on ETHBTC.
However, there are also opposing views within the community. When DeFi rose in 2020 and Bitcoin rebounded while ETH underperformed, people also began to question whether DeFi protocols were capturing the value of Ethereum.
But the fact is, at that time, ETH exchange reserves were at a low point, 25% of ETH was staked, ETH had a continuous negative issuance, and the ecosystem was years ahead of its competitors. Considering the upcoming launch of ETH spot, this community member believes that during times of pessimism, it is the best time to buy ETH.
Andrew Kang
ETH
SOL
Further reading
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Solana breaks $120, dog meme coins BONK, WIF gain momentum.