In a recent interview with Blockworks, Matthew Sigel, VanEck’s head of digital asset research, made a bold prediction about the future of the cryptocurrency market. Sigel believes that in the long term, the vast majority of economic value within the sector will be concentrated in Bitcoin and Solana (SOL).
“One to three types of layer-1 blockchains are likely to capture 99% of the economic value,” Sigel stated. “My intuition is that the overwhelming majority of economic value will be in Bitcoin and Solana, and investors will gravitate to DePIN and DApps.”
DePIN, short for decentralized physical infrastructure networks, refers to blockchain-based platforms that aim to tokenize real-world assets. DApps, or decentralized applications, are applications that run on a blockchain network, offering transparency, security, and immutability.
Sigel expressed particular optimism about Solana’s prospects, noting that VanEck has invested in several Solana-based DePIN projects. “We have high belief in Solana and have started our investments at an early stage. Our investment weight in Solana is much higher than ETH,” he said.
Among the Solana projects that VanEck has invested in are Hivemapper (HONEY), a decentralized mapping platform, and Helium (HNT), a decentralized mobile phone network.
Also Read: VanEck’s Ethereum ETF To Close – What You Need To Know Before Sept. 23 Liquidation
While Sigel remains bullish on Bitcoin and Solana, he acknowledged that Ethereum-based projects may play a less significant role in the long term. “We have less exposure to Ethereum-based projects,” he explained.
Sigel’s prediction aligns with a growing consensus among some analysts that the cryptocurrency market may eventually consolidate around a few dominant players. However, it’s important to note that the crypto landscape is highly volatile, and future developments could significantly alter the competitive dynamics.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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