Multicoin Capital said it is committed to expanding its investment in DeFi applications, especially in the Solana ecosystem, which has outperformed Ethereum and the Layer 2 ecosystem on key on-chain metrics this year.
"We expect this trend to continue, and as more users, capital, issuance, and activity migrate to Solana's ecosystem, Solana-based applications and protocols will be the big winners of the next cycle," said Kyle Samani, co-founder and managing partner of Multicoin Capital. Samani said Ethereum will continue to struggle and "may even fall into a long-term decline" as it faces fierce competition from Solana and other faster and cheaper blockchains. He added: "Unless Ethereum can compete, developers, users and capital will migrate to other chains that better meet their needs."
In addition, Multicoin is also bullish on stablecoins, which Samani described as "probably one of the greatest technological and financial innovations in our lifetime." "Stablecoins have the opportunity to become a powerful force in 2025," said Samani. "Everyone in the world wants dollars, and stablecoins are by far the most efficient way to get dollars. The design space is huge, and we are still relatively early in the adoption curve." (The Block)
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