Ethereum 'Big Daddy' But Raoul Pal Pins Hopes on Agentic AI Chain Sui

Raoul Pal, a well-known figure in the financial and crypto space, believes Ethereum (CRYPTO: ETH) is 'the big daddy' of smart contracts. However, he also thinks Sui (CRYPTO: SUI) has tremendous potential as it's specifically designed for machine-speed transactions that existing chains cannot match.

Pal argued that if Ethereum were to shut down tomorrow, the value destroyed would be in the trillions. He cited its dominance in the global stablecoin market, DeFi, and high-end digital art value. Additionally, banks building on-chain are overwhelmingly choosing Ethereum-compatible infrastructure, which is unlikely to change.

Pal also pushed back against the idea that Layer 2 networks are parasitic. He sees them as businesses built on top of infrastructure, capturing activity as long as value transacts across the Layer 1.

He highlighted Sui's programmable transaction blocks, which allow up to 1,024 different actions within a single blockchain slot, enabling complex agentic workflows to settle as one transaction. Free stablecoin transactions are also a deliberate design choice to reduce friction for machine-to-machine payments.

Pal noted that during the recent market drawdown, only three chains maintained economic density: Ethereum ranked first, Sui second, and Solana (CRYPTO: SOL) third. He emphasized his approach is simple: own the infrastructure layer and do almost nothing.