Alfred Chuang, general partner at venture capital firm Race Capital, said that the organization expects bullishness in Bitcoin and DeFi platform Solana, and is optimistic about the future of layer one (L1) blockchains. Chuang also shares why the demand for altcoin projects in this space is increasing.
Tier one altcoin projects provide financial diversification
Speaking to CNBC, Chuang stated that the excitement around cryptocurrencies is driven by the demand for generalized financial products that come with democratization and therefore reach more people. According to Chuang, the potential growth of cryptocurrencies is the ‘most exciting time’ in technology, mainly due to its decentralized nature, which eliminates the need for intermediaries. As for the phrase “We are on the rise,” Chuang shared in the CNBC statement:
We are optimistic about other first-tier cryptocurrencies such as Bitcoin and Solana. There is an enthusiasm in trading currencies to create financial products that will be much more generalized and more democratized to reach a much wider audience.
As reported by Somanews, Surojit Chatterjee, CEO of Coinbase, popular Twitter analysts Michaël van de Poppe and Austin Arnold recently predicted that “layer-1 (Layer-1) blockchain projects” will be on the rise in 2022. Some of these projects, which also attracted the interest of Race Capital’s general partner Alfred Chuang, are listed below.
Binance Smart Chain (BNB)
Chuang’s expectation coincides with that of Sam Bankman-Fried, founder of FTX
Young millionaire Fried believes Solana (SOL) will increase in value, citing the unique underlying technology that suggests it competes with Ethereum. Based on this potential, Chuang stated that venture capital firms will increase their support for Blockchain-based firms. Chuang believes that the rapid crypto growth rate of products like DeFi means that VC firms will follow the industry sharply as it is a unique technology product.