6 hours ago
Solana doesn't yet person an exchange-traded fund, but 1 of the asset's biggest backers is betting the Wall Street-friendly conveyance could travel successful 2025 — and believes it's well-positioned to trounce Ethereum's assorted akin products.
Multicoin Capital's Kyle Samani — a large capitalist successful SOL and countless subordinate protocols — has been publically pressing the Securities and Exchange Commission (SEC) to look favorably upon a SOL ETF. His bullish pronouncements truthful mightiness travel arsenic small surprise.
But onstage Tuesday astatine Blockworks' Digital Asset Summit successful New York City, Samani explained his presumption wherefore Solana is amended placed to entreaty to accepted investors than Ethereum did. It's each astir the money: the fees being generated on-chain, compared to the worth of the asset's totality.
"A batch of the crushed wherefore the ETH ETF didn't person a ace beardown reception was a batch of investors looked astatine ETH and said 'show maine the fees,' Samani said.
By his telling, they didn't find overmuch impervious to warrant investing astatine its precocious prices.
Stock traders often look astatine a company's terms to net ratio successful deciding whether it's implicit oregon undervalued; successful different words, erstwhile to invest. Crypto doesn't person specified a cleanable metric, but blockchains inactive person gross and tokens that tin beryllium mushed unneurotic for akin effect.
Samani believes Solana's theoretical P/E ratio is overmuch healthier from an investing standpoint than Ethereum's. His onstage mathematics placed Solana arsenic trading astatine 30 to 50 times its P/E whereas Ethereum is trading person to 1,000 times.
Solana's P/E ratio is "much much successful enactment with high-growth tech stocks," Samani said.
If the logic plays retired past accepted investors mightiness beryllium expected to judge Solana has much upside than Ethereum, and put accordingly.
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