While Bitcoin continues to trade sideways, Solana has demonstrated what an altcoin capable of actual price discovery can achieve. Ran, Chico, Becker, and Vinny examine the market for developing blockchain networks, their adoption, and potential use cases, as well as the possibility of Solana flipping Ethereum.
Bitcoin, altcoins, NFT, and the market as a whole have slowed down. Meanwhile, inflation in the United States is rising, with the producer price index rising 8.3 percent in the 12 months to August, the largest year-on-year increase since the series was revised in November 2010.
Did El Salvador cause significant price changes in Bitcoin?
The conversation began with the week’s most important event: Bitcoin becoming legal tender in El Salvador, and the possibility that the market is being manipulated as a result.
According to Alex Becker, he does not believe it was a manipulation, but rather a natural pause after the recent market boom. However, he believes there is a chance that Bitcoin will be influenced in the future by Western governments that utilize the US dollar as a tool.
Vinny believes the crash was caused by a fear factor that was exacerbated by people panicking once Coinbase went down. According to Chico, September has always been a bearish month for Bitcoin, and the present Bitcoin price levels should be the month’s bottom.
Bitcoin’s market share and dominance
The current trend, according to Ran, is remarkably similar to prior bull cycles [2017 and 2013], in which the market fell back and meandered sideways in August and September before accelerating to a parabolic advance by the end of the year. Chico agrees, predicting a parabolic movement in the final run.
According to Vinny, this could be Bitcoin’s final parabolic run because it will be less inclined to pump as it grows larger. According to him, the real question is how much higher it can go until competing networks with utilities like as Ethereum, Solana, and others emerge.
When adoption and utilities drive market prices, Alex believes Bitcoin will become less relevant. Ran believes that Bitcoin’s market share will never reach 60% again.
Solana vs. Ethereum
Because the Ethereum smart contracts infrastructure is failing, Vinny believes Solana will flip Ethereum in the next 12 months. He expects new and existing projects to migrate to the Solana ecosystem in the near future.
Solana wins on DeFi, according to Vinny, because the transaction costs are lower, allowing them to bring on more users. As a result, the arbitrage increases.
Alex believes Ethereum is in serious peril until ETH 2.0 fixes the user experience issues. He feels Ethereum is now failing to achieve its goals because the network is slow and unusable.
Crypto gaming is gaining pace, and it’s a multibillion-dollar sector that demands low costs, efficiency, and precision, Alex added.
Cardano vs. Solana
If Solana is the cheapest and best blockchain to use right now, Ran wonders why Cardano is the third largest cryptocurrency by market capitalization.
According to Alex, the market is currently far more speculative and is unmoved by reality or adoption. Before passing judgment, he wants to see how the Cardano network performs after the smart contract is released.
Cardano, according to Chico, is bigger because it is backed by Japanese investors. According to Vinny, Solana should pass Cardano shortly based on recent performance.
Vinny and Alex argue users do not care how decentralized Solana is as long as it works, Chico believes otherwise.