BlockBeats reported on December 31, according to The Block, that Multicoin Capital is working to expand its investments in DeFi applications, particularly within the Solana ecosystem, which has outperformed Ethereum and Layer 2 ecosystems this year on key on-chain metrics.
Kyle Samani, co-founder and managing partner of Multicoin Capital, stated, "We expect this trend to continue, and as more users, capital, issuance, and activity migrate to the Solana ecosystem, Solana-based applications and protocols will be the big winners of the next cycle."
Samani stated that Ethereum will continue to struggle, "and may even fall into a prolonged decline," as it faces fierce competition from Solana and other faster, cheaper blockchains. He added, "Unless Ethereum can compete, developers, users, and capital will migrate to other chains that better meet their needs."
Additionally, Multicoin is optimistic about stablecoins, which Samani described as "possibly one of the greatest technological and financial innovations of our lifetime."
"Stablecoins have the opportunity to become a powerful force by 2025," said Samani. "Everyone in the world wants dollars, and stablecoins are by far the most effective way to acquire dollars. The design space is vast, and we are still relatively early in the adoption curve."
