Pal Sees Sui Joining Elite Group of Blockchains Alongside Ethereum
Renowned financial expert Raoul Pal expects the smart contract market to shrink to just a handful of winners, and he believes Sui is one of them. Speaking on the Milk Road podcast, Pal said that the token isn't yet priced for this outcome.
Pal drew parallels with cloud computing and programming languages, where only three to five leaders dominate the market while specialists fill the long tail. He expects blockchains to follow a similar pattern, with Ethereum leading the group in his view. According to Pal, Ethereum holds about 70% of the stablecoin market, more than 70% of DeFi, and nearly all of the high-end NFT market.
Pal's valuation test is simple: estimate how much value would disappear if the network were switched off. He puts this figure above $1 trillion, well beyond ETH's current market value. Solana has won the speed and cost race after Ethereum's congested 2021 NFT boom, but Pal treats it as a live test of instant capital formation.
Pal cited a conversation with Solana co-founder, who told him about 240,000 tokens launching on the network each day, most of them by machines and AI agents. He argues that high fees signal an inefficient chain, and a network's value lies in what gets built on it.