The two most popular Ethereum [ETH] rivals- Avalanche [AVAX] and Solana [SOL] have seen tremendous growth in 2021 and received widespread attention with many touting them as ETH killers. However, a leading Blockchain engineer David Kajpust considers the hype surrounding the two assets as exaggerated. In a series of tweets, Kajpust detailed the reasons why the narratives around the two blockchains are strong in comparison to the Cosmos [ATOM] ecosystem and Polygon [MATIC] which according to him ‘also handles significantly higher transaction’.
First, the developer insists on looking from the perspective of Venture Capitalists [VCs] whose main goal is to ‘make as much money as possible as they want to buy low and buy A LOT‘ thus enabling them to purchase a large amount at a cheaper rate. Kajpust observed that the reason behind Solana and Avalanche witnessing a massive accumulation in 2021 is because of these large-scale investors selling at a higher rate to retail investors.
In terms of the community becoming more centralized, Kajpust noted that a small group of people was meticulously working behind the scenes to coordinate and interact with founding teams, OTC desks, and other rich individuals in collecting large percentages of SOL and AVAX. This according to him resulted in a creation of a semi-centralized distribution along with coordinated marketing strategies like announcing massive user incentives that lead to the shilling of the tokens.
Avalanche and Solana’s Bullish narration eclipsed others?
The developer in his post further analyzed the probable plan of action undertaken by the VCs with regards to the layer-1 blockchains such as Avalanche and Solana, this year. Reading along with the same, he stated,
“In retrospect, the A++ strategy for VCs in 2021 was: Find a fast L1 that you can buy 3-7% of all tokens, through founders or OTC. – Shill it. Endlessly. With conviction. Get it into the top 10 so that the liquidity is high enough to absorb billions in profit.”
In a nutshell, Kajpust observed that the Cosmos ecosystem is way too decentralized to have coordinated shilling, marketing, and have under-exaggerated narratives. On the other hand, that the current token distribution of Avalanche and Solana encourages shilling and has inflated bullish narratives.