American hedge fund, Pantera Capital, specialized in digital assets, is bullish on Ethereum (ETH) rivals like Solana (SOL) and Near in 2022.
Pantera, founded in 2003 and the first fund in the United States to offer a Bitcoin fund in 2013, tells its clients in its latest letter to investors that Ethereum can expect rival smart contract platforms to gradually eat away market share of Ethereum,
Paul Veradittakit, partner at the firm, notes that Ethereum’s share accounts only for 63% of the total value locked (TVL) in decentralized finance (DeFi), while at the start of 2021 it fully dominated the market with a 97% share.
According to Veradittakit, Solana can see further growth in 2022, powered by the increased number of projects in its ecosystem. Being a much cheaper and user-friendly option to Ethereum, he says about Solana:
“Solana, which offers unparalleled transaction throughput, saw an incredible 2021, reaching a peak TVL of $15 billion and a peak price of $260 in November versus $0.22 when it began trading in April 2020. Recent activity in the Solana community, including the launches of massive funds for decentralized social media and gaming, suggests that the ecosystem will continue to grow immensely in the coming year.”
Veradittakit also brings Near to the attention of the firm’s investors. Last April, the asset launched the Rainbow Bridge enabling the transfer of crypto assets between blockchains, which the Pantera partner predicts will ignite further growth for the project:
“Bridges (which enable interoperability between vastly different networks), such as NEAR’s Rainbow Bridge, will help accelerate the growth of non-Ethereum ecosystems by expanding access to liquidity and allowing easier composability of digital assets. Ethereum virtual machine (EVM) platforms, like Aurora on NEAR, are also making it easier than ever for Ethereum-based DApps (decentralized apps) to launch on other chains, enhancing cross-chain engagement within DeFi.”
In a research note, Investment bank JPMorgan last week told its clients of the recent push Solana is making as it is wining grounds on rival Ethereum. Prior to that, Bank of America commented on the ‘Ethereum killer’ Solana and said the network has the potential to become the “Visa of Crypto”.
At press time, cryptocurrencies still need to recover from huge losses in the last week. Solana is down 7.68% over the last 24 hours. NEAR is down <arel=”nofollow” href=”https://coinmarketcap.com/currencies/near-protocol/”>9.22% while Ethereum seem to have established a bottom at $2,446.83, just losing 0.57% in the last day. All data taken from CoinMarketCap.
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Source: Igaming
