Former Goldman Sachs executive Raoul Pal says a certain Ethereum (ETH) rival is likely to outperform the rest of the crypto markets in the next bull cycle.
In a new ask me something (AMA) session, the Real Vision founder says that while the Solana (SOL) blockchain has been experiencing technical difficulties of late, it doesn’t negate the Ethereum rival’s skyrocketing activity on-chain and network growth. .
“I love Solana. Yes, I understand it keeps breaking. Yes, I also understand that everyone knows that, so there is no informational edge in that at all. Therefore, if it survives the break and it is one of the biggest crypto protocols and it has more activity than any other chain outside of Ethereum then the chances of Solana participating well in the next up cycle is very high for me.
So I love Solana, it’s one for me.”
Pal says most asset classes are driven by the growth of central bank balance sheets, and when they expand, they tend to lower fiat currencies.
The macro expert says the only sectors that usually outperform currency decline in real terms are cryptocurrency and technology stocks, which is why he remains optimistic about digital assets in the long run.
“What’s really interesting is if you divide everything by the central bank balance sheet, what outperforms the cut of fiat currencies? Only two things in the world: the two things are cryptocurrency – Bitcoin and Ethereum – and technical stocks, because they’re both secular trends in technology.Nothing else outperforms the Fed’s balance sheet, so even real estate [is] pretty much sideways. It does its job, you maintain wealth, you do not make wealth.”
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