Pal Sees Sui Among Consolidated Blockchain Winners

Raoul Pal, co-founder of Real Vision and board member of the Sui Foundation, believes that the smart contract market will consolidate to a few winners. He predicts that only a handful of blockchains will dominate the market, with Ethereum leading the group.

Pal points out that cloud computing and programming languages have followed a similar pattern, where three to five leaders capture most of the market while specialists fill the long tail. In his view, Ethereum holds around 70% of the stablecoin market, more than 70% of DeFi, and nearly all of the high-end NFT market.

Pal also notes that Solana won the speed and cost race after Ethereum's congested 2021 NFT boom. However, he criticizes Solana for being dominated by memecoins, which he sees as a test of instant capital formation.

Pal believes that Sui is among the winners in this consolidation process due to its three key features: programmable transaction blocks, zero-fee stablecoin transfers, and privacy and quantum readiness. He rejects criticism that Sui earns little in fees, arguing that high fees signal an inefficient chain and that a network's value lies in what gets built on it.