Financial services titan Fidelity is naming leading smart contract platform Ethereum (ETH) and one of its rivals as examples of success.
In a recent report, the investing giant saysthat Ethereum and Solana (SOL) are good examples of blockchains with successful network effects and developer bases.
According to Fidelity, for a crypto project to ultimately be successful, it must be able to attract talented developers as well as maintain its core user base – two things the firm says Ethereum and Solana excel at.
“Projects that have shown the ability to be successful and create something promising have done so by attracting the proper talent and retaining their user base. Ethereum and Solana provide a great example of what is possible for a protocol that can attract a large amount of developers, build a usable platform, and gain a loyal network of users. When done right, there is clearly a lot of value that can be created for investors.”
Fidelity goes on to say that those who invest in non-Bitcoin (BTC) digital assets tend to take small positions in many different altcoins rather than just one, giving them options in an increasingly complex and growing crypto landscape.
“Given the increased amount of competition and potential paths of failure for many of these projects, allocating to non-Bitcoin tokens is often done with a venture capital-like mindset. Instead of picking one particular project, investment allocators typically take small positions across many individual names.
This typically results in seeking out an actively managed solution to deal with the increase in overall complexity. Again, this shows a stark contrast to a simple Bitcoin-only approach to digital assets.”
Ethereum is trading for $1,565 at time of writing, a fractional decrease on the day while Solana is moving for $22.07.
Don't Miss a Beat – Subscribeto get email alerts delivered directly to your inbox
Check Price Action
Follow us on Twitter, Facebookand Telegram
Surf The Daily Hodl Mix
Check Latest News Headlines
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Featured Image: Shutterstock/Tatiana Gavrish
