Author | @ZKwifgut
This is a BreakPoint report and a short reflection, to assist in research. The following:
1. PayFi and DeFi are the two pillars of Solana's vast crypto ecosystem, and I haven't seen any other ecosystem with such a clear strategy: Rely on DeFi to build an On-chain Economy, and on PayFi to achieve Mass-adoption
2. The review of PayFi-related projects at the BP event reveals the density and quality:
- Stablecoins and payments: PayPal PYUSD (can be purchased on-site); SOL debit card by Sanctum; Fusewallet virtual Visa card; Kast bank card; MakerDAO bridging stablecoins to Solana via Wormhole
- E-commerce: Using stablecoins to shop through Shopify Blinks, booking hotels and flights based on Helio Pay/Solana Pay accepting Solana stablecoin payments
- Payment hardware: Solana official second-generation Seeker phone; Showtime smartwatch
3. Solana's Consumer Crypto sector is already a coordinated effort, with far greater development reserves than other blockchains:
- Payment-friendly blockchain: High throughput, low gas, fast settlement, and further performance improvements from Firedancer upgrades
- Payment infrastructure: Stablecoins, mobile wallets, on/off-ramps, Solana Pay, Web2 payment integration (bank cards, PayPal), Cex\Dex, Blinks, payment hardware
- Payment scenarios: Online shopping, social e-commerce, offline events, gaming
- Supply side: Consumer hardware (phones\SIMs\watches), event tickets, merchandise, e-commerce goods (via Shopify integration), game items
4. Compared to Ethereum's "asset chain" positioning, Solana is solidifying its position as a "payment chain", currently the optimal blockchain solution for consumer retail and payment services
5. "Payment scenarios" and "supply side" are more challenging than basic infrastructure development, requiring BD resources and effort, such as integrating e-commerce and payment mediums, as well as complex supply chain management like phone manufacturing. The implementation of all these businesses requires significant management complexity and resource investment
6. The above "dirty work" is far from "issuing assets" and "liquidity", so it's understandable that some people are not enthusiastic about PayFi. What's happening in the Solana ecosystem has a touch of "long-termism"
7. Solana represents a type of L1 - the "corporate blockchain". The governance model is a foundation, the organizational capability model is corporate, with a clear vision, distinct values, focused resources, clear division of labor, and accountability for results
8. Solana's organizational capabilities are probably the top in the industry, with only top-tier exchanges as potential competitors (Solana's offerings still have the FTX touch). From strategy formulation, ecosystem expansion, community building, resource investment, internal collaboration, to small details like promotional video production and creativity, slogans, promotion rhythm, and BreakPoint offline events - all exude the qualities of a top-tier tech company
9. The market has started to use the term "Solana Killer", while "Ethereum Killer" is rarely mentioned, as Solana and Ethereum are now completely different species. Solana can now leave Ethereum as a reference point, and Solana itself has become the new reference
10. SVM is starting to emerge, and its advanced nature is being uncovered like a hidden treasure, and we will see more projects revolving around SVM worth watching
11. Memecoins are not in Solana's strategic mainstream, in my view they are just users' interests and investment games, Memes have become Solana's calling card through capital selection, and Solana's regular army's playbook may have just begun
12. Solana's community atmosphere is very captivating - fun, passionate, smart, and direct. Good products will stand out, and it is the most user-experience-respecting community
13. How to view the "market has no new things"? We have to accept that there may not be another DeFi-level on-chain innovation, and we have to accept that the upcoming on-chain innovations will be micro-innovations and model innovations. Consumer Crypto no longer has any frills, it's all about resources and execution
Investment strategy considerations (NFA):
- Ethereum is irreplaceable. So the more it resembles Ethereum, the less worth investing in (e.g. most L2s that overlap with Ethereum's ecosystem position), it's better to just allocate to Ethereum
- The more it resembles Solana, the more worth considering investing in, because Solana's success factors are replicable, even if it's difficult. You can start investing in the next Solana Killer
- Solana's consensus is moving towards global consensus. Although the non-consensus money-making opportunities are gone, global consensus ensures a more solid foundation for Solana to support larger capital and positions
- Memecoins have transcended emotions and culture, they are the ideological products of this cycle, and ideology has always been on par with technological innovation throughout history. Investors and institutions who understand this will know how to properly view Memecoins
- Watch out for Solana's 24\25 year unlocks
This is a BreakPoint report and a short reflection, to assist in research. The following:
1. PayFi and DeFi are the two pillars of Solana's vast crypto ecosystem, and I haven't seen any other ecosystem with such a clear strategy: Rely on DeFi to build an On-chain Economy, and on PayFi to achieve Mass-adoption
2. The review of PayFi-related projects at the BP event reveals the density and quality:
- Stablecoins and payments: PayPal PYUSD (can be purchased on-site); SOL debit card by Sanctum; Fusewallet virtual Visa card; Kast bank card; MakerDAO bridging stablecoins to Solana via Wormhole
- E-commerce: Using stablecoins to shop through Shopify Blinks, booking hotels and flights based on Helio Pay/Solana Pay accepting Solana stablecoin payments
- Payment hardware: Solana official second-generation Seeker phone; Showtime smartwatch
3. Solana's Consumer Crypto sector is already a coordinated effort, with far greater development reserves than other blockchains:
- Payment-friendly blockchain: High throughput, low gas, fast settlement, and further performance improvements from Firedancer upgrades
- Payment infrastructure: Stablecoins, mobile wallets, on/off-ramps, Solana Pay, Web2 payment integration (bank cards, PayPal), Cex\Dex, Blinks, payment hardware
- Payment scenarios: Online shopping, social e-commerce, offline events, gaming
- Supply side: Consumer hardware (phones\SIMs\watches), event tickets, merchandise, e-commerce goods (via Shopify integration), game items
4. Compared to Ethereum's "asset chain" positioning, Solana is solidifying its position as a "payment chain", currently the optimal blockchain solution for consumer retail and payment services
5. "Payment scenarios" and "supply side" are more challenging than basic infrastructure development, requiring BD resources and effort, such as integrating e-commerce and payment mediums, as well as complex supply chain management like phone manufacturing. The implementation of all these businesses requires significant management complexity and resource investment
6. The above "dirty work" is far from "issuing assets" and "liquidity", so it's understandable that some people are not enthusiastic about PayFi. What's happening in the Solana ecosystem has a touch of "long-termism"
7. Solana represents a type of L1 - the "corporate blockchain". The governance model is a foundation, the organizational capability model is corporate, with a clear vision, distinct values, focused resources, clear division of labor, and accountability for results
8. Solana's organizational capabilities are probably the top in the industry, with only top-tier exchanges as potential competitors (Solana's offerings still have the FTX touch). From strategy formulation, ecosystem expansion, community building, resource investment, internal collaboration, to small details like promotional video production and creativity, slogans, promotion rhythm, and BreakPoint offline events - all exude the qualities of a top-tier tech company
9. The market has started to use the term "Solana Killer", while "Ethereum Killer" is rarely mentioned, as Solana and Ethereum are now completely different species. Solana can now leave Ethereum as a reference point, and Solana itself has become the new reference
10. SVM is starting to emerge, and its advanced nature is being uncovered like a hidden treasure, and we will see more projects revolving around SVM worth watching
11. Memecoins are not in Solana's strategic mainstream, in my view they are just users' interests and investment games, Memes have become Solana's calling card through capital selection, and Solana's regular army's playbook may have just begun
12. Solana's community atmosphere is very captivating - fun, passionate, smart, and direct. Good products will stand out, and it is the most user-experience-respecting community
13. How to view the "market has no new things"? We have to accept that there may not be another DeFi-level on-chain innovation, and we have to accept that the upcoming on-chain innovations will be micro-innovations and model innovations. Consumer Crypto no longer has any frills, it's all about resources and execution
Investment strategy considerations (NFA):
- Ethereum is irreplaceable. So the more it resembles Ethereum, the less worth investing in (e.g. most L2s that overlap with Ethereum's ecosystem position), it's better to just allocate to Ethereum
- The more it resembles Solana, the more worth considering investing in, because Solana's success factors are replicable, even if it's difficult. You can start investing in the next Solana Killer
- Solana's consensus is moving towards global consensus. Although the non-consensus money-making opportunities are gone, global consensus ensures a more solid foundation for Solana to support larger capital and positions
- Memecoins have transcended emotions and culture, they are the ideological products of this cycle, and ideology has always been on par with technological innovation throughout history. Investors and institutions who understand this will know how to properly view Memecoins
- Watch out for Solana's 24\25 year unlocks
