Bankless Why is ETH Down So Bad this Cycle? | Kyle Samani
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Aug 26, 2024 
Kyle Samani, Managing Partner & Co-Founder of Multicoin Capital, dives deep into Ethereum's struggles compared to Solana and Bitcoin. He discusses the stark differences in valuation and the challenges Ethereum faces with Layer 2 interoperability. Samani critiques the current user experience and the implications for Ethereum's long-term viability. He highlights how Ethereum’s strategy of outsourcing execution may affect its competitive edge and stresses the importance of bridging communication between core developers and decentralized applications to ensure ecosystem health.
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Ethereum's Market Cap Gravity
- Ethereum's large market cap creates growth challenges, similar to large companies.
- Higher market caps lead to higher market expectations, making sustained growth harder.
Bitcoin's Special Snowflake Status
- Bitcoin's perceived "specialness" as a store of value differentiates it from functional assets like Ethereum and Solana.
- Ethereum and Solana, focused on financial applications, should be evaluated as growth assets, similar to tech stocks.
Rejecting "Store of Value"
- Kyle Samani rejects the idea of "store of value" as a distinct asset class, arguing for productive assets like equities.
- He believes assets like Walmart and Amazon offer inflation resistance while also generating yield.