$SOL/$ETH is showing signs of SOL probably gaining strength over ETH in the next few weeks. This drawdown is a retest before a continued push higher for SOL that began almost a year ago. However, it can be a longer period of consolidation where both SOL and ETH continue to perform well together at the same rate. Our thesis is $SOL will be the top L1 for this ensuing cycle and will become the primary transactional L1 with firedancer next year, before L2s shine in next cycle (~2028/29). Even then, $SOL will probably outcompete L2s by its first mover advantage in speed, efficiency, and massive user adoption already taking place!
