Raoul Pal Bets Big on Sui as Ethereum 'Big Daddy' of Smart Contracts

Raoul Pal, a well-known financial expert and crypto enthusiast, recently shared his thoughts on Ethereum's dominance in the smart contract market. He described it as 'the big daddy,' acknowledging its significant influence across various sectors.

Pal explained that if Ethereum were to be shut down tomorrow, the resulting economic loss would be in the trillions of dollars. This is due to its control over approximately 70% of the global stablecoin market and its dominance in DeFi (decentralized finance) applications.

He also addressed concerns about Layer 2 networks being 'parasitic.' Pal argued that these networks are businesses built on top of Ethereum's infrastructure, and as long as value is transacted across the main chain, Ethereum captures this activity. He emphasized that banks building on-chain are overwhelmingly choosing Ethereum-compatible infrastructure.

Pal then shifted his focus to Sui, a smart contract network he believes has significant potential in the agentic AI economy. He sees Sui as the third major player in the market, alongside Ethereum and Solana. Sui's unique feature is its ability to handle machine-speed transactions that existing chains cannot match.