Digital asset investment giant Pantera Capital is giving a bullish outlook for Ethereum (ETH) rivals like Solana (SOL) and Near in 2022.
In its latest letter to investors, Pantera partner Paul Veradittakit says that rival smart contract platforms are eating away the market share of Ethereum, which now accounts for just 63% of the total value locked (TVL) in decentralized finance (DeFi), down from 97% at the start of 2021.
Veradittakit says that Solana (SOL), which aims to be a faster and cheaper alternative to Ethereum, is particularly primed to grow in 2022 fueled by the increasing number of projects in its ecosystem.
“Solana, which offers unparalleled transaction throughput, saw an incredible 2021, reaching a peak TVL of $15 billion and a peak price of $260 in November versus $0.22 when it began trading in April 2020. Recent activity in the Solana community, including the launches of massive funds for decentralized social media and gaming, suggests that the ecosystem will continue to grow immensely in the coming year.”
Veradittakit says that Near, which in April launched the Rainbow Bridge that enables the transfer of crypto assets between blockchains, is also set for explosive growth.
“Bridges (which enable interoperability between vastly different networks), such as NEAR’s Rainbow Bridge, will help accelerate the growth of non-Ethereum ecosystems by expanding access to liquidity and allowing easier composability of digital assets. Ethereum virtual machine (EVM) platforms, like Aurora on NEAR, are also making it easier than ever for Ethereum-based DApps (decentralized apps) to launch on other chains, enhancing cross-chain engagement within DeFi.”
At time of writing, Solana is equivalent to $94.85, while Near is valued at $11.35. Ethereum is trading at $2,388.35.
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