Author: @ZKwifgut
This is a BreakPoint article about my experience and thoughts to assist with investment research. The following are the specific views:
1. PayFi and DeFi are the two legs of Solana's huge crypto ecosystem. So far, no ecosystem has such a clear strategy: relying on DeFi to build an On-chain Economy and relying on PayFi to move towards Mass-adoption
2. By sorting out the PayFi-related projects at the BP site, you can feel the density and quality:
- Stablecoins and payments: PayPal PYUSD (you can buy peripherals on site); SOL debit card by Sanctum; Fusewallet virtual Visa card; Kast bank card; MakerDAO bridges stablecoins to Solana via Wormhole
- E-commerce: Use stablecoins to shop through Shopify Blinks, and accept Solana stablecoins to pay for flight and hotel reservations based on Helio Pay/Solana Pa
- Payment hardware: Solana official mobile phone second generation Seeker; sports watch Showtime
3. Solana's Consumer Crypto sector is already a group operation, with construction reserves far exceeding those of other public chains:
- Payment-friendly blockchain: high throughput, low gas, fast settlement, and further performance improvements brought by Firedancer upgrade
- Payment infrastructure: stablecoins, mobile wallets, on\off-ramp, Solana Pay, Web2 payment integration (bank cards, payment software Paypal), Cex\Dex, Blinks, payment hardware
- Payment scenarios: online shopping, social e-commerce, offline activities, games
- Product supply side: consumer hardware such as mobile phones, SIM cards, watches, exhibition tickets, peripherals, e-commerce products (connected with Shopify), game props
4. Compared with Ethereum’s “asset chain” positioning, Solana is positioning itself as a “payment chain”. Currently, it is the optimal blockchain solution for consumer retail and payment products and services.
5. "Payment scenarios" and "commodity supply" are more difficult than infrastructure development. They require BD resources and workload, such as connecting e-commerce and payment media. Another part involves extremely complex supply chain management, such as manufacturing mobile phones. The implementation of all the above businesses requires very large management complexity and resource investment.
6. The above dirty work is too far away from "issuing assets" and "liquidity". It is normal that some people are not interested in PayFi. What happened in the Solana ecosystem is somewhat related to "long-termism".
7. Solana represents a type of L1 - corporate blockchain. The governance model is a foundation, and the organizational capability model is a company, with a clear vision, clear values, focused resources, clear division of labor, and responsibility for results.
8. Solana’s organizational ability is probably the best in the industry, and only first-tier exchanges can rival it (to this day, Solana’s products still have the flavor of FTX). From strategy formulation, ecosystem expansion, community building, resource investment, internal collaboration, to promotional video production and creative level, slogans, promotion rhythm, and BreakPoint offline activities, they all have the temperament of a top technology company.
9. The term “Solana Killer” has become popular in the market, while “Ethereum Killer” is rarely mentioned. After all, Solana and Ethereum are completely different species. Solana can leave the reference frame of Ethereum, and Solana itself has become the reference frame.
10. SVM begins to show its potential. The advanced nature of SVM is being discovered like a hidden treasure. We will see more projects around SVM emerge, which are worth paying attention to.
11. Memecoin is not in the main line of Solana’s strategy. In my opinion, it is just a fun and investment game for ecosystem users. Meme has been chosen by investors to become Solana’s business card. The chapter of Solana’s regular army strategy may have just begun.
12. Solana’s community atmosphere is very exciting. It is interesting, passionate, smart, and direct. Good products will stand out. It is also the community that respects user experience the most.
13. How do you view "there is nothing new in the market"? We have to accept that there may not be any more on-chain innovations at the level of DeFi. We have to accept that the next on-chain innovations are all micro-innovations and model innovations. Consumer Crypto no longer has any fancy tricks, it all depends on resources and execution.
Investment strategy thinking (NFA):
- Ethereum is irreplaceable. Therefore, the more similar to Ethereum, the less worth investing (such as most L2s that overlap with Ethereum's ecological niche). It is better to invest in Ethereum.
- The more similar it is to Solana, the more worthwhile it is to consider betting on, because Solana's success factors can be replicated, even if it is difficult. It's time to start investing in the next Solana Killer
- Solana's consensus has moved towards global consensus. Although the non-consensus money-making opportunities have passed, the global consensus ensures that Solana has a more solid foundation and can carry larger funds and positions.
- Memecoin transcends emotions and culture, and is the ideological product of this cycle. Ideology is on par with technological innovation in any historical period. Investors and institutions who understand this will know how to view Memecoin correctly.
- Pay attention to Solana 24\25 year unlock
