A veteran trader in the crypto space thinks one layer-1 blockchain project offers a similar opportunity to what Ethereum (ETH) did four or five years ago.
In a new interview with Bankless, Chris Burniske, a partner at the venture capital firm Placeholder, argues that Solana (SOL) is currently undervalued and has ETH-like potential as an investment.
Says the trader,
“I think if I had to pick an ecosystem that’s contentious and that you should pay attention to, and in its contentiousness is undervalued, it would be Solana. Placeholder, each bear market, tends to pick an ecosystem or two and build an aircraft carrier strategy around that ecosystem. And so the last bear [market], it was ETH and Bitcoin, because those were really the only things at scale and liquid enough to justify.
And what I mean by aircraft carrier – if you take Ethereum, buy a bunch of the core ETH asset, but then venture invest around it and really get to know that ecosystem and who all the people are that are working on say, at that point in time, lending or DEXs [decentralized exchanges] or asset management or whatever. And then you can pick the best teams of the teams that most speak to you from a venture perspective. We’re doing that exact same aircraft carrier strategy around Cosmos and Solana right now.”
The trader, however, notes that Solana valuations “at the venture stage” are much lower than Ethereum and Cosmos.
He says Solana valuations are now exactly where Ethereum was in 2018 and 2019.
Source : [Here’s the Next Ethereum-Level Opportunity for Crypto Traders, According to Investor Who Called Bitcoin Reversal](dailyhodl.com/2023/02/01/heres-the-next-ethereum-level-opportunity-for-this-market-according-to-investor-who-called-crypto-reversal/) by Daily Hodl Staff - The Daily Hodl by Daily Hodl Staff / February 01, 2023