Multicoin Capital co-founder Kyle Samani has predicted that an increasing number of crypto companies will choose to build on Solana rather than Ethereum, driven by Solana’s superior ease of use and greater overall functionality.
Speaking during an episode of Cointelegraph’s Trade Secrets, Samani forecasted that Solana is poised to flip Ether in market capitalization during “this market cycle.” He further cautioned that Ethereum may gradually lose its long-held edge as the default smart contract network choice for emerging and established crypto enterprises alike.
“They’ll all switch their default over to Solana because it’s the most functional network for all of them and it’s just easier to consolidate their operations around Solana to the extent that they can,” Samani explained during the interview.
Samani and Multicoin Capital amassed a sizable early position in Solana, and he has remained one of the network’s most vocal and steadfast proponents for years. However, fulfilling his ambitious prediction would require a massive shift in market valuations. Solana would need to achieve a five-fold increase from its current market capitalization of roughly $58 billion to surpass Ether’s substantial market cap of $293 billion.
During the discussion, Samani offered a stark assessment of Ethereum’s current utility and market standing. He argued that “today, no one really uses Ethereum” for primary transaction activity, asserting that the network only maintains its leading blockchain status due to stablecoins and stablecoins borrowed against Ether as collateral.
Market data from TradingView indicates that SOL and ETH have largely moved in lockstep in percentage terms during recent market upturns. Over a recent 30-day window, Ether climbed 30%, while SOL posted a 34% gain. Nevertheless, Solana’s recent upward momentum comes off a smaller base, and the token endured a steeper decline during the previous bear market. According to TradingView metrics, SOL fell 59% over the course of a year, compared to a more moderate 45% decline for Ether.
Did Samani Ragequit Crypto?
Samani’s steadfast bullishness on Solana comes on the heels of a turbulent period regarding his personal involvement in the digital asset sector. In February, Samani announced that he was stepping down as managing partner of Multicoin Capital after a decade in the industry, describing the departure at the time as a “bittersweet moment.”
At that juncture, Samani appeared deeply dispirited regarding the broader trajectory of the crypto industry. He reportedly published and quickly deleted a post on X, formerly Twitter, stating that he once believed in the Web3 and decentralized applications vision, but no longer did. He added that crypto was fundamentally not as interesting as many enthusiasts, including himself, had originally hoped.
If Samani experienced a crisis of confidence, however, it proved to be remarkably fleeting. By September, he had returned to an active industry role, joining the United States board of directors at the crypto trading platform Backpack.
Ethereum Has Questionable Value Accrual
Elaborating on his critique of the leading smart contract network, Samani stated that he remains bearish on Ethereum’s capacity to accrue value for token holders, despite its status as the largest smart contract platform by valuation.
“It’s a $400 billion to $300 billion asset that has questionable value accrual, if any, and it’s not growing at all,” Samani remarked.
He added that he fails to understand why rational investors would want to hold Ether at its current valuation, noting that he sees a wide array of alternative investment opportunities available at much more reasonable prices across the broader financial landscape.
Furthermore, Samani reiterated his view that crypto companies will increasingly pivot toward Solana, praising it as the most functional network that simplifies operations for firms seeking to consolidate their technical infrastructure.
While SOL accounts for less than one-fifth of Ether’s total market capitalization, it has managed to outpace the Ethereum network in both weekly and monthly generated fees. Data compiled by DefiLlama indicates that Solana generated $23 million in fees over a recent 30-day period, securing the fourth-rank position in monthly fees among blockchain networks. In comparison, Ethereum generated $12.6 million over the same timeframe, placing it in sixth place.
Solana Became One of Multicoin Capital’s Top Bets
Samani’s journey in the blockchain sector began in 2016 when he first discovered permissionless finance and smart contracts through Ethereum, which he has frequently described as his entry point into the crypto space. However, he gradually lost faith in the ecosystem after becoming increasingly dissatisfied with the strategic approach Ethereum developers took toward scaling the mainnet.
He encountered Solana shortly after co-founding Multicoin Capital in May 2017. The investment firm subsequently went on to lead some of Solana’s earliest private investment rounds in 2018.
The early bet on Solana turned out to be one of the most successful investments in Multicoin Capital’s history. The firm reported managing $5.9 billion worth of assets as of May 2025, cementing its status as one of the most prominent institutional crypto investment firms in the world.
Before diving headfirst into the cryptocurrency industry, Samani co-founded and served as the chief executive officer of Pristine, a healthcare IT company that developed enterprise software utilized by surgeons via Google Glass.
