Matthew Sigel, the head of digital assets research at VanEck, believes that Bitcoin and a handful of other blockchains will dominate the crypto market in the long run. He predicts that most of the value in the crypto world will be concentrated in these few “layer-1” networks.
Focus on Decentralized Apps and Infrastructure
Sigel says that once this consolidation happens, investors will shift their focus to decentralized applications (DApps) and decentralized physical infrastructure networks (DePINs). He believes that these technologies have the potential for mass adoption.
Solana: A Top Pick
Sigel is particularly bullish on Solana (SOL), a competitor to Ethereum. He says that VanEck is heavily invested in Solana and projects built on its network.
DePIN Projects: Hivemapper and Helium
VanEck has invested in two DePIN projects built on Solana:
- Hivemapper (HONEY): This project aims to create a decentralized alternative to Google Street View.
- Helium (HNT): Originally an internet of things network, Helium has evolved into a 5G mobile network.
Ethereum Scaling Solutions: Not a Priority
Sigel says that VanEck is not as enthusiastic about Ethereum-based scaling solutions, known as “layer-2” solutions.
