“While the underlying tech stack might resemble Bitcoin or Ethereum L2’s, the function and role is so radically different I think founders would best be served by Network Extensions. Network Extensions extend the Solana network to new places, or bring new execution environments, specialized processing, etc to the Solana network. State Compression, cNFTs, Neon’s EVM layer, maybe even Phoenix all fit this mental framing imo,” Federa .
Why This Could Put Solana ‘In Limbo’
Responding to this post, Ignas, a popular crypto analyst and co-founder of Pinky Brains, voiced his and concerns to his 105,000 followers on X. Ignas highlights the critical nature of the ongoing debate about Solana’s developmental strategy. He raises a fundamental question about whether the crypto community will embrace the new “Network extension” terminology or continue to favor the Layer 2 framing.
“ETH was stuck between BTC and SOL during this bull run. BTC was ‘better money’ for less conservative and institutional investors, and SOL as a faster, simpler, and cheaper smart contract platform with higher upside than ETH. If Solana narrative shifts from a monolithic model to scaling with L2s (like Ethereum), SOL could become the new ETH. [..] then SOL is truly in limbo,” Ignas warns.
The impact on the Solana price could be significant. According to Ignas, Ethereum would remain the “safer option” for long-term investors because of its higher decentralization and no downtimes. “Plus, if degens start chasing ‘network extension’ tokens for SOL beta instead of buying SOL, it could stagnate SOL’s price growth,” the analyst added.
However, if the Solana narrative shifts to L2s, there could be an empty void for a new monolithic champion. The crypto analyst concluded: ”Solana’s shift to a modular scaling approach creates an opportunity for a new monolithic scaling champion in the eyes of crypto community. Could this be the perfect moment for Monad to launch? Or will another Layer 1 blockchain seize the monolithic chain crown from Solana? Exciting!”
