Sam Bankman-Fried is the CEO of crypto exchange FTX and he says Solana could become the largest decentralized financial platform. For this, Ethereum has to be overtaken.
Speaking to Kitco News, Fried said Solana’s unique underlying technology for developing decentralized financial protocols will also contribute to the token’s price increase. In other words, the course of Solana sails on a good DeFi ecosystem.
Helping millions of transactions
According to Fried, Solana has the ability to natively scale millions of transactions per second, which is a huge advantage in DeFi.
“Yes, I think one of the most compelling parts is that it has the potential to scale to where things need to scale as blockchain gets massive. And it has the potential to host DeFi applications for hundreds of millions to billions of people on top of a massive, buildable ecosystem. Again, that’s not to say it will necessarily happen, but it could happen.”
Scale for mass adoption
Furthermore, Fried indicated that the crypto space will continue to experience crashes and bull runs, but several projects are likely to survive the cycles. He says crypto protocols and long-term projects are the ones that can be scaled to enable mass adoption as blockchain technology expands.
He warned that hype-driven cryptocurrencies have crashed the hardest, and investors should watch out.
Not op me memecoins
Fried stated that investors should avoid meme coins with anonymous creators, because of the assessment of the holders of the token. He pointed out that coins with more than 60% of the supply allocated to a few individuals should be approached with caution.
“I think in general the projects that you see survive the best are the projects with a huge loyal following and the projects with important use cases. I think the ones that seemed more hype-driven often crashed the hardest. But if you look at projects that either have a lot of real adoption or have the potential for a lot of real adoption, those are projects that loyalists will support even during a bear market. And so I think you’re looking at blockchains that could see massive adoption. You look at different exchanges and other infrastructure players will be the key to this space in the future.’
Fried expects that the crypto sector is likely to grow in the next five years, mainly driven by potential institutional investments.
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