The head of digital assets research at VanEck, an ETF provider, believes that Bitcoin and a select few layer-1 blockchains will outperform the market in the long run. In a recent interview on the Bitcoin Macro YouTube channel, Matthew Sigel expressed his confidence that the majority of economic value in the digital assets industry will be concentrated in just a few key networks.
Sigel predicts that traders will eventually focus their investments on decentralized applications (DApps) and decentralized physical infrastructure networks (DePIN). He emphasized, “One to three kinds of layer-1 blockchains are likely to take 99% of the economic value that’s created in the space.” He further added, “My hunch is that an overwhelmingly large share of the economic value accrues to Bitcoin plus one or two layer-1s and then with the riskier capital, we go hunting for DApps, whether it’s gaming or DePIN that have the best chance at mass adoption.”
VanEck is particularly bullish on Solana (SOL), a competitor to Ethereum (ETH). Sigel mentioned that the company is “overweight” on investments in projects built on the Solana blockchain, such as Hivemapper (HONEY) and Helium (HNT). Hivemapper aims to compete with Google Street View and is built on Solana, while Helium has transitioned from an Internet of Things network to a 5G mobile network.
Despite the popularity of layer-2 scaling solutions, VanEck is currently underweight on Ethereum-based ones. At the time of writing, Solana is trading at $135.05 with a 4% increase in the last 24 hours, while Bitcoin is valued at $57,596.
In conclusion, VanEck’s strategic investments in blockchain projects indicate a strong belief in the potential of Bitcoin and select layer-1 blockchains to dominate the digital assets industry. Their focus on Solana and related projects underscores their confidence in the future of decentralized applications and infrastructure networks. Subscribe to stay updated on the latest developments in the digital assets space and follow The Daily Hodl on social media platforms for more insights.