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 suggested that Ethereum could gradually lose its long-held edge as the default smart contract network choice for emerging and established crypto businesses 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 told Cointelegraph.
Samani and Multicoin Capital amassed a sizable early position in Solana, and he has remained one of the network’s most outspoken proponents for years. However, for Samani’s ambitious prediction to materialize, Solana would need to experience a massive growth trajectory. Achieving a market cap higher than Ether requires roughly a five-fold increase from Solana’s current valuation of $58 billion to surpass Ether’s standing market capitalization of $293 billion.
During the discussion, Samani asserted that “today, no one really uses Ethereum” for primary transaction activity, claiming the network only maintains its leading position 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 one-month period, Ether rose by 30%, while SOL gained 34%. However, analysts note that Solana’s percentage rise comes off a smaller base and that the token suffered a more severe contraction during the previous bear market, declining 59% over the course of a year compared to Ether’s 45% drop.
Did Samani Ragequit Crypto?
The bold prediction comes months after a period of public introspection for the prominent investor. In February, Samani announced that he was stepping down as managing partner of Multicoin Capital after a decade in the cryptocurrency industry, describing the departure at the time as a “bittersweet moment.”
During his exit, Samani appeared deeply dispirited about the broader trajectory of the sector. He reportedly posted and quickly deleted a message on X stating that he once believed strongly in the decentralized application and Web3 vision, but no longer did. He added that crypto was fundamentally not as interesting as enthusiasts, including himself, had once hoped.
If Samani experienced a crisis of confidence, however, it proved to be relatively short-lived. By September, he 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 market leader, Samani stated that he remains bearish on Ethereum’s long-term ability to successfully accrue value for its holders, despite its status as the largest smart contract network by total asset 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 struggles to understand why institutional or retail investors would choose to hold Ether at its current valuation, noting that he sees significantly more compelling investment opportunities available across the market at much more reasonable price points.
Reiterating his bullish outlook on Solana, Samani praised it as the most functional network available, arguing that its architecture makes it vastly superior for firms looking to streamline and consolidate their operational footprints.
While SOL accounts for less than 20% of Ether’s total market capitalization, on-chain metrics show that the Solana network has recently surpassed Ethereum in both weekly and monthly fee generation. According to data compiled by DefiLlama, Solana generated $23 million in fees over a 30-day window, securing the fourth spot in monthly fees among all blockchain networks. In contrast, Ethereum generated $12.6 million over the same period, placing it in sixth position.
Solana Became One of Multicoin Capital’s Top Bets
Samani’s journey in the blockchain sector began in 2016 when he discovered permissionless finance and smart contracts through Ethereum, which he has frequently cited as his true entry point into the crypto ecosystem. Over time, however, he grew disillusioned with the network, specifically citing dissatisfaction with how Ethereum’s core developers approached scaling solutions and layer-2 strategies.
He encountered Solana shortly after founding Multicoin Capital in May 2017, and the investment firm went on to lead several of Solana’s earliest funding rounds in 2018. The bet ultimately became one of the most successful investments in Multicoin Capital’s history. By May 2025, the firm reported managing $5.9 billion in assets, cementing its status as one of the most prominent and influential venture capital firms in the digital asset space.
Before entering the cryptocurrency industry, Samani co-founded and served as the chief executive officer of Pristine, a healthcare IT company that built specialized software for Google Glass utilized by medical surgeons in operating rooms.
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