According to the head of digital assets research at VanEck, Bitcoin (BTC) and a few layer-1 blockchains are expected to outperform the market in the long run.
In a recent interview on the Bitcoin Macro YouTube channel, Matthew Sigel from VanEck predicts that the majority of the economic value in the digital assets industry will be concentrated in just a few layer-1 networks.
Sigel suggests that investors will shift towards decentralized applications (DApps) and DePIN (decentralized physical infrastructure networks) technology once this consolidation occurs.
“One to three layer-1 blockchains are likely to dominate 99% of the economic value in the space…
My belief is that a significant portion of the economic value will be captured by Bitcoin and one or two layer-1s, with riskier capital being allocated to DApps, such as gaming, and DePIN projects that show potential for mass adoption.”
VanEck is particularly bullish on Solana (SOL) as a competitor to Ethereum (ETH), with investments in projects like Hivemapper (HONEY) and Helium (HNT) that are built on the Solana blockchain.
“We have been early supporters of Solana… Our exposure to Solana is higher compared to ETH than market caps would suggest…
As a firm, VanEck has invested in projects like Hivemapper, a mapping application on the Solana blockchain aiming to rival Google Street View. We also support Helium, which has transitioned from an Internet of Things network to a 5G mobile network.”
VanEck is underweight on layer-2 scaling solutions, especially those based on Ethereum, according to Sigel.
At the time of writing, Solana is trading at $135.05, with a 4% increase in the last 24 hours, while BTC is valued at $57,596.
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