Multicoin Capital Co-Founder Kyle Samani Predicts Solana Will Flip Ethereum This Market Cycle

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 superior ease of use and greater network functionality.

Speaking during an episode of Cointelegraph’s Trade Secrets show, Samani boldly forecasted that Solana will flip Ether in market capitalization during "this market cycle." He suggested that Ethereum may gradually lose its historical edge as the default smart contract network choice for new and established crypto enterprises.

"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 explained during the interview.

Samani and his firm, Multicoin Capital, amassed a sizable early position in Solana, and he has remained one of the network’s most vocal and steadfast proponents for years. However, realizing his latest prediction would require a massive shift in market valuations. SOL currently holds a market capitalization of approximately $58 billion, meaning it would need to experience a roughly five-fold increase to surpass Ether’s current market capitalization of $293 billion.

During the discussion, Samani offered a stark assessment of Ethereum’s current standing in the blockchain ecosystem. He argued that "today, no one really uses Ethereum" for active, day-to-day operations outside of specific financial niches, contending that the network largely maintains its leading position primarily due to stablecoins and stablecoins borrowed against Ether as collateral.

Market data shows that SOL and ETH have largely moved in lockstep in percentage terms during recent market upturns. Over the course of a recent 30-day period, Ether registered a 30% price increase, while SOL rose by 34%, according to figures from TradingView. However, Solana’s recent gains come off a smaller historical base, and the token experienced a steeper decline during the preceding bear market. Over a one-year span, SOL fell 59%, compared to a 45% decline for Ether over the same period.

Did Samani Leave Crypto Behind?

The remarks follow a period of transition and reflection for the prominent crypto investor. In February, Samani announced that he was stepping down as managing partner of Multicoin Capital after spending a decade in the cryptocurrency industry, describing the departure at the time as a "bittersweet moment."

During that transitional phase, Samani appeared deeply dispirited regarding the near-term trajectory and cultural state of the industry. Industry observers noted that he briefly published and subsequently deleted a post on the social media platform X, in which he expressed deep disillusionment with the sector.

"I once believed in the web3 vision. dapps. I don’t anymore," Samani reportedly wrote in the deleted post. "Crypto is just fundamentally not as interesting as many crypto enthusiasts wanted. Myself included."

Yet, if that moment represented a momentary crisis of confidence, it proved to be remarkably fleeting. By September, Samani had formally re-engaged with the digital asset sector, joining the United States board of directors at the crypto trading platform Backpack.

Ethereum Faces Questions Over Value Accrual

Returning to his broader thesis on blockchain infrastructure, Samani elaborated on why he remains explicitly "bearish" on Ethereum’s capacity to accrue fundamental value, despite its status as the largest smart contract network by total value locked.

"It’s a $400 billion to $300 billion asset that has questionable value accrual, if any, and it’s not growing at all," Samani stated.

He added that he fundamentally struggles to understand why rational investors would want to allocate capital to Ether at its current valuation, noting that he sees a wide array of alternative investment opportunities available across the broader technology and financial markets at much "more reasonable prices."

In contrast, Samani reiterated his belief that crypto firms will continue pivoting toward Solana. He characterized Solana as "the most functional network," pointing out that its architectural design makes it far easier for commercial enterprises seeking to streamline and consolidate their operational footprints.

While SOL still accounts for less than one-fifth of Ether’s total market capitalization, it has notably outperformed the Ethereum mainnet in generating transaction fees across weekly and monthly timeframes.

According to data compiled by DefiLlama, Solana generated $23 million in network fees over a recent 30-day window, securing the fourth-place ranking among all blockchain networks in monthly fee generation. Ethereum, by comparison, generated $12.6 million during the same period, placing it in sixth place.

Solana’s Place as a Cornerstone Bet for Multicoin Capital

Samani’s long-standing conviction in Solana stems from a multi-year journey through the evolution of blockchain infrastructure. He initially discovered permissionless finance and smart contract architectures through Ethereum back in 2016, frequently describing it as his definitive "entry into crypto."

However, his relationship with the network deteriorated over time as he grew increasingly dissatisfied with how Ethereum core developers approached scaling solutions and layer-2 strategies.

He first encountered Solana shortly after co-founding Multicoin Capital in May 2017. Recognizing the high-throughput blockchain’s potential early on, his firm went on to lead several of Solana’s earliest institutional investment rounds in 2018.

That early-stage conviction ultimately materialized into one of the most successful wagers in Multicoin Capital’s operational history. By May 2025, the firm reported managing approximately $5.9 billion in total assets, cementing its reputation as one of the most influential and prominent investment firms operating within the digital asset ecosystem.

Before diving headfirst into the cryptocurrency industry as an investor and venture capitalist, Samani worked as an entrepreneur. He co-founded and served as the chief executive officer of Pristine, a healthcare IT startup that developed pioneering software for Google Glass utilized by practicing surgeons in clinical environments.