{"id":9427,"date":"2025-01-24T01:31:33","date_gmt":"2025-01-24T01:31:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9427"},"modified":"2025-01-24T01:31:33","modified_gmt":"2025-01-24T01:31:33","slug":"solana-will-topple-nyse-and-nasdaq-predicts-investment-firm","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9427","title":{"rendered":"Solana Will Topple NYSE And NASDAQ, Predicts Investment Firm"},"content":{"rendered":"
\n

An ambitious new investment thesis from crypto-focused venture firm Multicoin Capital claims that Solana\u2014currently a dominant $100 billion blockchain ecosystem\u2014could eventually \u201coutperform the major traditional finance (TradFi) players,\u201d including NYSE, NASDAQ, and CME. The 17-minute read, published by Multicoin Capital Co-Founder Kyle Samani and titled \u201cThe Solana Thesis: Internet Capital Markets,\u201d outlines in detail why the firm believes SOL can capture value from every layer of the global financial stack.<\/p>\n

How Solana Could Topple NYSE And NASDAQ<\/h2>\n

Multicoin Capital has been a supporter of Solana since its seed round in May 2018. Noting that the network has become \u201cthe fastest-growing developer ecosystem\u201d while surpassing \u201cEthereum on most major on-chain metrics (trading volumes, daily active addresses, REV, TEV, DePIN payments, etc.),\u201d Samani describes the newly released thesis as the firm\u2019s fifth major SOL-focused essay<\/a>.<\/p>\n

\u201cNow that Solana is a $100B asset\u2026 we wanted to share our thoughts on how we\u2019re underwriting SOL for strong returns even above $100B market cap,\u201dSamani writes.<\/p>\n

Multicoin\u2019s core argument is that Solana\u2019s architecture can reduce user fees by 90% to 99%\u2014yet also enable the ecosystem to capture a market cap that surpasses many TradFi incumbents. Samani contends that while conventional stock exchanges capture fees solely for trading services, Solana\u2019s decentralized nature allows it to accrue additional revenue from multiple financial protocols built atop its network.<\/p>\n

In the thesis, Samani stresses that the direct fee revenue from payments is not the real prize. Although the near-zero cost of a SOL transaction (roughly $0.001 per transaction) makes it attractive to merchants and consumers, these fees pale in comparison to high charges on mainstream money-movement systems.<\/p>\n

\u201cStill, he sees payments as a crucial vector for growth: \u201cPayments are important for driving adoption\u2026 they are inherently viral,\u201d Samani says.<\/p>\n

According to the report, a viral-like spread of wallet usage occurs whenever people transact with each other, making everyday payments a powerful tool for onboarding new users. This, in turn, drives more liquidity and volume toward the core DeFi applications responsible for generating the bulk of profits.<\/p>\n

Samani highlights conditional liquidity (CL)\u2014pioneered by DeFi platform DFlow on Solana\u2014as a vital breakthrough. CL allows market makers (MMs) to offer tighter spreads by ensuring that only \u201cnon-toxic\u201d order flow, generally from trusted front-end partners, can tap into this liquidity.<\/p>\n

\u201cCL is a nascent concept\u2026 we expect it will become the dominant paradigm for quoting liquidity on-chain,\u201d Samani writes. This practice mirrors established TradFi approaches, such as those used by Robinhood and its market-making partners. The biggest potential impact is more favorable pricing for regular users, bridging one of the largest efficiency gaps between centralized and decentralized exchanges.<\/p>\n

Samani argues that Solana\u2019s upcoming Multiple Concurrent Leaders (MCL) framework\u2014where several nodes simultaneously produce blocks\u2014will let global participants incorporate market-moving information more quickly. Unlike a single exchange server in one physical location, MCL spreads leadership across the network, reducing latency for those far from legacy finance hubs. In principle, this system should enable decentralized price discovery to outperform centralized matching engines.<\/p>\n

Samani envisions Solana\u2019s role not just as a \u201cdecentralized NASDAQ<\/a>\u201d but as a global platform for all financial services\u2014from derivatives and lending to real-estate tokenization and traditional equities.<\/p>\n

\u201cVirtually all assets will trade on inherently global and permissionless systems like Solana, eventually,\u201d Samani posits. He also highlights the potential for entirely novel asset classes to emerge, such as fractionalized real estate\u2014exemplified by projects like Parcl\u2014or tokenized bottles of whiskey and collectible watches. This places Solana in a prime position to host the trading and management of all forms of tokenized value.<\/p>\n

A key focus is how blockchains like Solana capture revenue through maximum extractable value (MEV)\u2014the value validators or miners can glean from the ordering of transactions. With an expanding array of financial protocols and capital markets running on-chain, Samani claims MEV will be the primary revenue driver.<\/p>\n

\u201cSolana itself is not providing financial services. But Solana creates the stack that powers hundreds\u2026 of financial services\u2026 And while gas costs are near 0\u2026 Solana directly profits from the growth of these financial services via maximum extractable value (MEV)<\/a>,\u201d Samani argues.<\/p>\n

According to the thesis, the Solana network earned more than $800 million in \u201cREV\u201d (revenue minus token inflation) during the last quarter of 2024, up from nearly zero one year prior. That figure translates to an annualized rate of $3.2 billion\u2014an impressive jump, considering few traditional assets are yet on-chain and many DeFi protocols on Solana remain in early stages.<\/p>\n

In concluding the thesis, Samani asserts that Solana\u2019s decentralized infrastructure can ultimately overtake incumbent exchanges by delivering:<\/p>\n