Crypto 101, Ep. 714: Why Solana Could Dominate Crypto (And What Ethereum Got Wrong) with SOL Strategies

Hosts: Bryce Paul & Brendan Viehman
Guest: Max Kaplan (CTO, Soul Strategies; former Kraken Director of Engineering)
Date: March 23, 2026

Overview

This episode brings on Max Kaplan, CTO of Sol Strategies and previous Director of Engineering at Kraken, to provide an insider’s perspective on why Solana stands poised to “dominate crypto”—focusing on its technology, real-world adoption, and protocol strategy—while breaking down what Ethereum has (and hasn't) gotten right. Kaplan discusses Sol Strategies’ role as a validator, their treasury and staking products, Solana’s explosive growth over the last year, and the bigger shifts shaping which blockchains will define the next era of finance.

Key Discussion Points & Insights

1. Introduction to Sol Strategies & Recent Developments

[02:06 - 05:55]

• Structure: Publicly listed company (CSE and NASDAQ), with two main areas—treasury management (holding & growing SOL tokens) and validator operations.
• Validator Role: Operates own and white label Solana validators for clients (e.g., Solana Mobile, Pengu by Pudgy Penguins); currently 3.5 million SOL delegated.
• Liquid Staking Product: New launch enables users to maintain staked exposure while using tokens elsewhere in DeFi—addresses native staking's withdrawal wait & lack of collateral options, but recognizes added risk (smart contract).
• ETF Partnership: Sole validator provider for VanEck’s Solana ETF, necessitating extensive reporting translation for traditional finance understanding.

“We believe in Solana, the network, and you know, we’re putting our money where our mouth is…” —Max Kaplan [02:45]

2. The Mission & Philosophy: Supporting Solana from All Angles

[05:55 - 08:06]

• Not Just a DAO: They see themselves as ecosystem builders, not just token holders.
• Holistic Approach: Partnership with ETF providers, staking services, DeFi participation, and validator operations all reinforce Solana’s prosperity.

“The best way to prove that or validate that is to say, ‘Hey, because we’re big fans...we’re going to own a lot of Solana because we are betting on the thing that we’re so bullish about.’” —Brendan [05:55]

3. Crypto’s Next Phase: Revenue as Core Value Driver

[13:26 - 18:36]

• Maturing Market: Protocol and project “revenue” (real utility) increasingly matters, moving away from pure speculation.
• Tokens vs. Layer 1s:
  • Non-L1 tokens should act more like equities, giving holders actual rights or revenue claims.
  • For L1s, value is tied to “selling block space”—if no one pays fees to use the chain, long-term value isn’t sustainable.

“My belief is that layer ones sell block space… The value of that layer one is very, very low, in my opinion, regardless of what coin market cap says, if it’s not being used.” —Max Kaplan [15:57] “Something is only worth as much as someone is willing to pay for it… If people aren’t willing to spend fees to use the chain, it’s worthless.” —Max Kaplan [17:28]

4. Why Solana Over Ethereum? A Technical & Ecosystem Comparison

[20:27 - 27:55]

• Fee Markets & Scalability:
  • Early blockchains (BTC/ETH) had high fees, which priced out many users.
  • Solana’s bet: ultra-low fees and high throughput bring in more volume, benefiting protocols and end-users.

“Solana is more a model of let’s have many, many people submit transactions on-chain that are paying very little. That is the reason I think Solana is going to win.” —Max Kaplan [22:38]

• Technical Metrics:
  • Solana’s block times (400 ms, aiming ≤100 ms) vs Ethereum’s (12s). Speed is crucial for financial/trading apps.
  • Solana DeXes occasionally outperformed centralized exchanges like Kraken & Coinbase in volume.
• Composability & Liquidity:
  • Ethereum’s rollup/L2 scaling roadmap “fragments” liquidity; Solana keeps everything on-chain for seamless trading.
  • If user assets are siloed on separate L2s, composable DeFi/trading is hindered.

“Ethereum has this problem where they have liquidity fragmented across all their layer twos. They’re not composable…” —Max Kaplan [26:09]

5. Ethereum’s Path, Pitfalls & Layer 2s “Civil War”

[25:05 - 34:33]

• Ethereum Improvements:
  • ETH block times are shortening, fees dropping, but scaling roadmap remains long/complex vs. Solana’s working model.
• Vitalik’s L2 Doubts:
  • Host Brendan echoes Vitalik’s public skepticism of general-purpose Layer 2s, foreseeing a shakeout for generic rollups while purpose-built ones (e.g., for specific platforms/exchanges) could find utility.

“Generic layer twos make no sense. But it’s not only that they make no sense, it’s that they’re parasitic, right? Ethereum was shipping volume...to a layer two...I don’t see Coinbase...giving that up anytime soon.” —Max Kaplan [30:18]

6. Challenges for Bitcoin & Ethereum: The Bear Case

[34:33 – 41:17]

• Ethereum:
  • Layer 2 “Civil War”—liquidity captured by L2s (e.g., Base by Coinbase) may never return to ETH mainnet, creating a permanent fragmentation.
• Bitcoin:
  • Quantum Threat: Core dev governance too slow/ossified to respond quickly if quantum computers break SHA-256 in next 10-20 years.
  • Security Budget Problem: Nearly all miner revenue from new issuance, not tx fees; if on-chain tx volumes don’t massively grow by block reward halving, miners may switch off.

“Bitcoin will die if people don’t use the Bitcoin blockchain...When inflation goes to zero, miners will have to shut down...” —Max Kaplan [38:10]

7. What’s Next for Solana: Technical & Real-World Growth

[41:17 - 48:49]

• Technical Upgrade—Alpenglow:
  • Solana upgrade promises to cut blocktimes to ~100ms, enabling even lower latency and better trading/app experiences.
• Non-Technical: Tokenized Real-World Assets (RWAs):
  • Prime: Tokenized US HELOC yield; ONRA: Tokenized re-insurance—unprecedented retail access to yield streams formerly limited to institutional players.
  • Growth of tokenized stocks and other blockchain-native exposures.

“These tokenized funds…are beautiful…it gives investors exposure to things that typically only, like, the top 1%...could get access to.” —Max Kaplan [43:36]

• Retail vs. Institutional Adoption:
  • Ethereum still dominates institutional mindshare (e.g., TVL, stablecoin supply) but Solana is winning in retail activity (active users, DEX volume, new asset launches).
  • Kaplan compares to Blockbuster/Netflix: “Just because Ethereum is ahead on TVL/stablecoin now doesn't mean Solana can't surpass it with time and execution.”

“There was a time where Blockbuster was doing 10x more than Netflix...Look how that turned out. The answer...is it’s going to take more time.” —Max Kaplan [46:19]

8. Looking Forward: Expansion at Sol Strategies

[49:31]

• Brief tease of Sol Strategies’ expansion beyond validators, promising exciting new products/services coming soon.

Notable Quotes & Memorable Moments

• Max Kaplan on aligning business with conviction:

  “We are not a DAO. But you know, we do believe in Solana...we’re putting our money where our mouth is.” [02:45]

• On the composability crisis in Ethereum:

  “If you have $100 of USDC in some liquidity pool, that can’t be used on Arbitrum in Base...and it can’t be used on Ethereum as well.” [26:09]

• On whether blockchain success = higher coin price:

  “Solana can be wildly successful...grow its market share, grow its activity, but while that should be reflected in price, it’s not forcefully reflected in price.” —Brendan [18:36]

• On Solana’s DEX volume:

  “The day the Trump meme coin launched, Solana DEXes did double the volume of both Kraken and Coinbase combined...” [22:08]

• On the next killer feature:

  “Alpenglow...could [make Solana] up to 4x faster…The smaller the block times, the more interesting things you can do.” [41:41]

Timestamps for Key Segments

• [02:06] — Sol Strategies’ validator/treasury business & new liquid staking product
• [08:06] — Why “betting big” isn’t just about holding tokens
• [13:26] — Protocol/project revenue as next essential metric
• [15:57] — Layer 1s’ value comes from “selling block space”
• [20:27] — Why low fees & scale make Solana superior for most use cases
• [22:08] — Solana DEX volume outperforms CEXs during major event
• [25:05] — Can Ethereum “catch up” on scalability and cost?
• [26:09] — The composability & liquidity challenge of Ethereum’s L2 ecosystem
• [30:18] — Purpose-driven vs. generic Layer 2s: Value or parasite?
• [34:33] — Bitcoin: The quantum threat & security budget dilemma
• [41:41] — Solana’s new technical upgrades & the promise of tokenized RWAs
• [45:45] — What’s needed to close the institutional gap?
• [46:19] — “Blockbuster vs Netflix” analogy for blockchain adoption

Final Thoughts and Where to Learn More

Kaplan concludes with a teaser of upcoming Sol Strategies developments beyond validator services. Listeners are encouraged to follow Max on X (@MaxEKaplan) and visit SoulStrategies.io for updates.

This summary captures the key arguments, data points, and strategic debate from the episode—essential listening for crypto investors and builders making long-term bets on blockchain infrastructure.