Ethereum, Solana are pulling in more users than other blockchains: Exec
- Placeholder VC’s Chris Burniske recently appeared on a podcast with Raoul Paul.
- The VC executive believes that everything in the crypto space will eventually be benchmarked to Ethereum.
Chris Burniske, a partner at venture capital firm Placeholder, recently appeared on a Real Vision podcast with Raoul Paul. The podcast revolved around valuation techniques of cryptocurrencies, Ethereum and Solana in particular.
Ethereum and Solana are leading in terms of adoption
Raoul Paul started the podcast by proposing that the whole crypto space be benchmarked against ETH just like all credit markets are benchmarked against U.S. Treasuries.
Burniske agreed with Paul’s thoughts and added, “ETH is risked minimized yield for the internet, just as the 10-year (T-Bill) is risk minimized yield for the physical space.”
The Placeholder executive agreed that everything will be benchmarked against the world’s second-latest crypto as long as it maintains its dominance in this space.
Burniske made headlines last year after he correctly called the 2022 crypto bottom. According to him, cryptocurrencies competing with heavyweights like Ethereum and Solana are less likely to succeed in terms of harnessing network effects.
To highlight the superiority of ETH and SOL, he cited the logical design choices of interoperable blockchains like Polkadot and Cosmos.
He stated that Ethereum and Solana’s appeal was much more than that of Polkadot and Cosmos, despite the latter’s technical advantages.
Chris Burniske further added:
“[Polkadot] is still a top-20 network, and I don’t think it goes away, but it’s important for people to pay attention to the differences in crypto asset design and use, because that’s a big one. That’s where I see ETH and SOL as quite similar, and some of the other designs. They made more rational or logical decisions I would say, but they’re less explosive or less exposed to network effects,”
When asked about investments in the crypto space, Burniske stated that his VC firm was interested in furthering blockchain infrastructure by funding crypto projects that are focused on decentralized applications (dApps).
He linked the current market conditions to the post-dot-com bubble, where major companies were selling for a massive discount.