Raoul Pal Holds Bitcoin, Solana and Ethereum, but Calls One Wildly Undervalued
Real Vision CEO Raoul Pal calls Ethereum wildly undervalued while still holding Bitcoin, Solana, and Sui, arguing that markets misprice blockchain networks during a podcast appearance. Still, the numbers behind his argument deserve a closer look before anyone follows his lead. Why Pal Says Ethereum Matters Most Under his stress test, Ethereum would go offline tomorrow. The outage, he says, would knock out 70% to 76% of stablecoins and a similar share of DeFi. Beyond that, most real-world assets, the digital art market and every Layer-2 network built on top would suffer too. Taken together, Pal estimates that damage would erase between 1 trillion and $1.5 trillion. The market has not priced that risk, he argues. Now there is demand for Bitcoin as a collateral asset. We know that. But the convexity of, you know, something like ETH, I dont know what the size of ETH is now, what its market cap is, but its wildly undervalued versus, you know, what is coming, Pal said. Ethereum (ETH) Price Performance. Source: BeInCrypto Specifically, he buys when an asset falls two standard deviations below its long-term trend, then holds. His investment approach has stayed the same for two years. Consider 2022, when he bought Ethereum and Solana near their lows and rode them to all-time highs. Selling near the top and buying back lower, he warns, is psychologically impossible. Meanwhile, he also holds Solana and Sui. Suis economic density, which he praises, helped it weather this years pullback. The same dip-buying approach extends to Zcash, as demand for privacy rises. Why Could Liquidity Flow Back Into Crypto? Crypto and tech, Pal argues, have lagged money-supply growth because new capital flowed into AI infrastructure. Looking ahead, rate cuts and renewed capital spending could redirect liquidity toward crypto. Crypto remains cheap against gold and the Nasdaq, he said. Further out, he sees an economic singularity driven by AI agents arriving by 2030. That window, he adds, makes the next four years a critical period to build wealth. At Sui Base Camp in Singapore, he forecast a $10 trillion crypto market within 18 to 24 months. Longer term, he says the market could reach $100 trillion by 2035. Stablecoin supply, he expects, could reach $1 trillion within three to four years as institutions move more assets on-chain. Rising liquidity, AI investment, and tokenized assets are the key drivers. By contrast, Bitcoin still trades below its long-term trend and looks undervalued against tech stocks. However, weak liquidity could delay a rally. Overall, the message is consistent: focus on network value and long-term trends, not short-term noise. Read the article at BeInCrypto
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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