Sam Bankman-Fried, founder of the FTX cryptocurrency exchange, said that the popular altcoin Solana will likely become the largest decentralized finance platform in the process, directly competing with Ethereum. Billionaire Fried noted that Solana’s unique underlying technology for developing decentralized finance protocols will also contribute to the token’s price increase. Detail Cryptocoin. com
Popular altcoin Solana could be the star of DeFi
According to Fried, Solana has the ability to natively scale millions of transactions per second, a feature that gives the token an edge in the DeFi space. Fried says:
Yes, I think one of the most appealing parts of this is that if the blockchain grows, it has the potential to scale where things need to scale. And with a huge composable ecosystem, it has the potential to host DeFi applications for hundreds of millions to billions of people. Again, that doesn’t necessarily mean it will, but it could.
Further, Fried noted that the crypto space will continue to experience crashes and bull runs, but few projects will likely survive the cycles. He noted that long-running crypto protocols and projects will be those that can scale to allow mass adoption as blockchain technology expands.
Hype warning about cryptocurrencies
He warned that cryptocurrencies, driven by hype and speculation, are among those experiencing the hardest crashes and that investors should be cautious. Fried noted that investors should avoid meme coins with anonymous users, in addition to reviewing token holders. He pointed out that cryptocurrencies with more than 60% of the supply allocated to a few people should be approached with caution. Fried says:
I think the projects that stand out best overall are those that have a huge loyal following and have significant use cases. I think those that seem more hype-driven usually crash the hardest. But when you look at projects that are actually being adopted or have the potential for real adoption, these are projects that loyalists will support even in a bear market. And I think you’re looking at blockchains that could see massive adoption. You’re looking at various exchanges and other infrastructure players will be key to the advancement of this space.
According to the billionaire, institutional investors will spur growth in the crypto space. Overall, Fried stated that the crypto industry will grow over the next five years, mainly through potential institutional investment. He said that the possibility of more institutions joining the field will increase capital inflows into the sector.