Solana can scale to millions of transactions per second, which is why it could become the next leading digital asset protocol, according to the FTX CEO.
The founder of the FTX cryptocurrency exchange – Sam Bankman-Fried – believes Solana (SOL) could become the next most dominant digital asset project. He added that Avalanche (AVAX) is another blockchain network that can climb to the top.
In a interview Recent news to Kitco News, the 29-year-old American shared his thoughts on the current cryptocurrency landscape and what projects could survive a potential market crash.
Asked if this was the last bullish run in the sector, Bankman-Fried said that there will always be downturns followed by price increases. Over the next two years, he expects “see substantial institutional adoption of cryptocurrencies”, which will benefit the entire ecosystem.
The FTX CEO hasn’t ruled out the possibility of experiencing a 2018-style bear market. However, he thinks blockchain protocols with loyal supporters, and important use cases wouldn’t disappear even under such adverse conditions. Hype-related projects like memecoins are more likely to crash:
“The projects you see surviving the best are the ones that have huge, really loyal followings and the ones that have really important use cases. I think those who seem more driven by exaggeration tend to brake harder.”
Bankman-Fried believes Solana fits the description of a significant project, outlining his ability to scale millions of transactions per second. As such, it can become a key part of the financial network and even morph into the new Bitcoin or Ethereum.
“Solana has a real chance to do this, which I find very exciting.”
It’s important to note that Solana isn’t his only choice, as he also believes in Avalanche:
“I think there are also other tokens that intend to increase the scale a little bit, and Avalanche is one of them.”
The Squid Game Saga
In October, the Squid Game (SQUID) token became one of the most popular assets in the cryptocurrency space, and many people invested in it. The excitement around him was so great that, at one point, it rose by 110,000% in a matter of a few days. However, in early November, it was pulled by its creators and its price plummeted 99.99%.
According to Bankman-Fried, these dubious designs will always exist in space. He said people should never invest more than “are willing to lose“.
He pointed out two big red flags in the SQUID saga: the creators of the token weren’t “affiliated with the Netflix series” and were anonymous:
“If you don’t know who this person is and you don’t trust them, there’s always the risk of someone pulling the rug. If they don’t have any tokens and can’t mint more tokens, there’s much less they could do to gain value at the expense of token buyers. ”