Altcoin’s Biggest Opportunity Is Happening Right Now, Crypto Evangelist Says

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Ran Neuner says there is an Ethereum competitor that is on the verge of a value boom. Solana’s blockchain can compete with Ethereum but at a faster and cheaper rate. He names 4 additional altcoins that the average investor should hold that are similar to Ethereum.

The smell of altcoin season is in the air.

Traders determine that the season started after the bitcoin price spikes and people are taking profit to buy smaller tokens which are more speculative but potentially rewarding. This results in altcoins outperforming the biggest crypto.

The season now seems to be playing out. Cryptos excluding bitcoin like polkadot and ethereum are returning to their previous highs, and others like cardano and terra are reaching new highs. Meanwhile, bitcoin’s performance this year was more than 80 altcoins behind on Friday, according to CoinMarketCap.com.

While many investors are casting a wide net and taking a stand on a variety of different projects, Ran Neuner, co-founder and CEO of blockchain investment fund Onchain Capital, is very excited about a crypto right now. This is solana (SOL), a token that is widely regarded as a competitor to Ethereum.

Neuner got into crypto in 2014 after discovering bitcoin. Soon after, he became bullish on ethereum, a Layer 1 blockchain that offers smart contracts. And in 2018, he saw the Aether explode in value after going from around $ 300 to $ 1,300.

“The biggest achievement of 2017, the 2018 bull market is actually ethereum. Ethereum has significantly outperformed bitcoin during that time, and it came out of nowhere,” Neuner said.

There are two things fueling Ethereum right now: Decentralized Finance, or DeFi, and Non-fungible Tokens (NFTs). These two sectors have spread like wildfire both on the institutional side and among young individual investors.

Neuner sees this as a glimpse of what could happen in the near and distant future. Since these first two major use cases of blockchain were very popular, there will eventually be more demand for blockchains that support smart contracts.

This means Ethereum will have fierce competition, especially because it has scaling issues and high gas fees, Neuner said. It is undergoing several upgrades to resolve these issues. However, he believes the world will need more than a single blockchain to support the various apps coming to town.

This is the source of his enthusiasm for Solana, the second blockchain after Ethereum in terms of NFT explosions.

Why solana is “the biggest blockchain opportunity since 2018”

Solana is similar to Ethereum, except that it is much faster and costs a fraction of the price per transaction. And, it attracts NFT developers and buyers in droves to its platform. Neuner adds that a number of big names are supporting Solana, including Sam Bankman-Fried, founder and CEO of the FTX crypto exchange, and Multicoin Capital, a crypto investment firm.

“I think what we’re about to see is this virtuous circle of, there’s a lot of money in Solana. Therefore, more brains are going to be drawn to Solana to create amazing apps. therefore more money is going to flow into Solana and that creates a network effect, “said Neuner.” And so I think Solana has to be the biggest opportunity in blockchain since 2018. ”

Neuner told Insider he has long-term positions in Ethereum and Solana, but recently sold around 40% of his Ether holdings to buy more solana.

Besides solana, cardano (ADA) is another layer 1 crypto that can support smart contracts. However, Neuner notes that the solana is technically cheaper even though it trades for a considerably higher price. Both hit record highs on Friday, with Solana near $ 145 (up over 7,550% this year) and Cardano above $ 3 (up 1,607%).

“This is one of the most important concepts you need to grasp in cryptocurrency: just because the price of a token appears to be cheaper doesn’t mean it’s worth more,” said Lunch.

Similar to calculating the market cap of stocks, you can find out the value of a crypto protocol by multiplying the number of tokens in circulation by its price. Cardano has the third largest market cap while Solana is seventh, according to CoinMarketCap.com.

Another distinction between the two is that solana has already proven its capabilities in smart contracts, while investors are waiting for cardano to start deploying them.

For the average investor, Neuner always recommends branching out into a variety of platforms that offer similar use cases. This means having positions in ethereum, solana, cardano, avalanche (AVAX) and polygon (MATIC).

Neuner told Insider that he owns all of these cryptos. But he is mitigating his risks by keeping his positions modest in more recent projects like Avalanche.

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