Cryptocurrency venture firm Pantera Capital says Ethereum is losing ground as Solana becomes a “major contender for the future of blockchain development.”
Pantera Capital, a crypto venture capital firm with billions in assets under management and looking to buy millions worth of SOL from bankrupt FTX exchange, appears to be increasingly highlighting Solana's potential on Ethereum to investors.
In a June 18 newsletter, the Menlo Park-headquartered venture capital firm said that Ethereum's dominance “appears to be capitulating to the multipolar model,” pointing to Solana as a new prominent product that has gained “significant share over the past year.”
This shift is reminiscent of Microsoft's dominance of the early desktop computer market, until Apple broke through with its vertically integrated approach. Solana is now a major contender for the future of blockchain development.”
Pantera Capital
Drawing parallels to Apple's hack in the early days of personal computing, Pantera likened Solana's integrated approach to Apple's vertically integrated strategy with macOS, saying the network's monolithic architecture has a product roadmap “focused on improving each component of its blockchain “.
The venture capital firm says Solana's “architectural advantages” enable a range of use cases and user experiences “that would be more difficult to implement on standard blockchains like Ethereum and Cosmos,” citing Solana's “fast, low-cost transactions.”
“Solana’s architectural advantages enable it to capture a significant share of the new demand coming into the blockchain space, accelerating its rise as a competitor to Ethereum.”
Pantera Capital
The company's endorsement of Solana follows reports that Pantera Capital was among the bidders for SOL tokens auctioned by FTX during bankruptcy proceedings earlier this year, purchasing a significant stake in the tokens. Reports Indicates Pantera Capital was interested in purchasing the auctioned SOL tokens worth up to $250 million, although the exact amount taken was not disclosed.