- Former ParaFi Capital partner Santiago Santos said Solana could flip Ethereum in the next crypto market cycle.
- The web3 investor said there is a 25% probability that SOL flips Ethereum.
- Solana trades at $59.90, losing around 3% on the day.
In a recent episode of the Empire podcast, Santiago Santos, former Partner at ParaFi Capital, shares his views on how Solana’s market capitalization could exceed Ethereum’s in the next market cycle.
Santos’ views are shaped by expectations of higher capital inflows in the crypto ecosystem, and a larger share for Solana funds.
Solana could flip Ethereum if these conditions are met
Santos recalls his investment in Ethereum and says that when he first purchased ETH, he did not imagine the altcoin’s market capitalization would climb to billions. At the time of writing, ETH market capitalization is $274.51 billion, and Solana is at a $25.51 billion market cap, according to CoinGecko data. ETH price slowly and consistently increased as capital inflows to altcoin climbed and Ethereum funds received capital from institutional investors.
Santos’ argument is that an increase in funding in Solana could help the altcoin flip Ethereum’s market capitalization. The former ParaFi Capital partner explains that the overall crypto market capitalization does not need to increase necessarily. Instead, capital rotation from Ethereum and the ETH ecosystem’s Layer 2 protocols to Solana and the SOL ecosystem could help drive the change.
Ethereum’s market cap doesn’t need to shrink for Solana to flip Ethereum, he said. With its various use cases and boost in utility, SOL and its ecosystem could emerge as a relatively profitable avenue for investment and draw capital from retail and institutional investors in the next crypto market cycle.
Santiago Santos said that the probability of SOL flipping ETH is at 25%. Santos has entertained the idea of selling all his Ether and buying SOL tokens in exchange. The Web3 investor is firm in his thesis of Solana flipping Ethereum in the near future.
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