Leveraging 50x Long on SOL Choosing Between SOL and ETH A Dilemma for Mechanism Capital Partners

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Andrew Kang goes long SOL with high leverage
Why does he think Solana is more attractive than ETH?
According to data from decentralized derivatives trading platform GMX, Andrew Kang, a partner at Mechanism Capital, opened a long position on SOL with a notional value of $400,000 at 50x leverage on GMX this afternoon.
At the same time, Andrew Kang also shared his views on the current blockchain ecosystem on social media, comparing Ethereum with Solana and claiming that Solana is more profitable and attractive for traders.
Andrew Kang believes that in the first 6 to 7 years of Ethereum’s existence, despite many uncertainties, Ethereum was an attractive risk asset for many Bitcoin holders in the market. As a result, many Bitcoin holders were willing to convert their holdings to Ethereum. However, over time, Ethereum has gradually transitioned from a “risk asset” to a “hedge asset”, with the proportion of investment in Ethereum and Bitcoin stabilizing and a decreasing number of people willing to convert.
Many believe that recent innovations such as “layer 2 networks” and “modular technology” will bring new narratives to Ethereum. However, Andrew Kang believes that these innovations will instead put significant pressure on Ethereum during risk-on market cycles.
In other words, Andrew Kang believes that ETH has lost its attractiveness in risk-on periods. In comparison, Solana has not faced the same issues as Ethereum and has successfully weathered multiple market cycles, overcoming barriers to becoming a top-tier L1 network. Andrew Kang stated:
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