Solana CEO Yakovenko compares the crypto adaptation curve with that of other technologies. He says:
“We may be at the stage where emails started to work on the internet.”
Crypto prices, from Bitcoin to BNB, are just starting to rise again. The market capitalization of cryptocurrencies, which stood at $ 1.2 trillion on July 19, has almost doubled since then and now stands at $ 2.27 trillion.
A large share of this has Ethereum competitor Solana (SOL), which advertises with faster transaction speeds and lower costs. The price of the network’s own SOL token has tripled in the past month, according to data from CoinGecko. It currently has a market capitalization of $ 40 billion.
These numbers may make the current crypto market look like a bubble. However, he is not, says Solana founder and CEO Anatoly Yakovenko. At least not as you might think.
“This is a very different time in this area than any other. So it’s not really comparable to bubbles. The bubble of 2017 came and went, and for three years there were people who built something.“
The crypto infrastructure is built
Now the point has come where the infrastructure is built that allows new engineers and developers to iterate quickly. And:
“In other words, we have passed the stage of speaking and the time of white papers. “
The financial aspect of these things would happen with real products and real communities, according to Yakovenko.
In this regard, it does not matter if the price of SOL or other cryptocurrencies remains high, because the products themselves begin to be usable. Yakovenko is also not worried about the sustainability of NFTs. Their sales have helped attract people to the SOL network looking for a cheaper place than Ethereum to buy, sell and trade digital collectibles and art.
“The sustainable thing is that there are creative people who come up with new ideas, who look at the past and reshuffle it and build something new.“
CryptoPunks may come and go, but innovation will remain as more and more people – not just speculators, but developers and creatives – enter this space. The result is that ” every time this fad is over, there are already 100 people wondering: what am I building in crypto?“
So: a price bubble? Perhaps. The dot-com bubble burst in 2000, when sites like Pets.com after inflated valuations went bankrupt. But if you’re reading this, you know that the crash that followed didn’t destroy the internet – just the speculation about it.
Cryptocurrencies go through a similar adoption curve, where speculation gives way to functionality, according to Yakovenko.
Text credit: Decrypt
Last updated on September 4, 2021
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