Ark Invest CEO Cathie Wood noted on Wednesday that blockchains have existed for a long time and that new launches will keep coming.
Blockchains Analogous to Fast Food Chains?
Wood shared an X article by Lorenzo Valiente, Director of Research at Ark Invest, which framed Ethereum (CRYPTO: ETH), Solana (CRYPTO: SOL), and Hyperliquid (CRYPTO: HYPE) as distinct business models
Valiente said Ethereum maps to McDonald’s Corp. (NYSE:MCD) business model. In this model, Ethereum owns the brand, the operating system, including standards like ERC-20, and the "real estate"—which is simply blockspace plus the Layer 1 settlement guarantee that Layer 2 chains rely on.
Note that McDonald’s operates primarily as a real estate and franchising company, with its global locations owned and run by independent franchisees.
He then mapped Solana to Chipotle Mexican Grill Inc. (NYSE:CMG). Just as Chipotle owns every store and controls the entire customer experience and operations, Solana also has all activity concentrated on its Layer 1 chain, with no middleware or L2 layer.
Finally, Valinte mapped Hyperliquid to In-N-Out Burger. In-N-Out is privately held, never franchised and focuses on a small menu. Similarly, the Ark Invest executive said Hyperliquid was built by a “small team” and the cryptocurrency equivalent of “never taken outside capital.”
Blockchain Launches to Continue?
Wood said that Valiente’s analysis provides a “digestible framework” for understanding the different business models.
“Blockchains have been around for more than a decade, and more will launch,” she added.
Wood’s Top Crypto Picks
Wood has been bullish on cryptocurrency, with her firm Ark Invest focusing on the “big three” projects with robust ecosystems and utility: Bitcoin (CRYPTO: BTC), Ethereum and Solana.
As for Bitcoin, she has positioned the apex cryptocurrency as the “insurance policy” for wealth protection that many investors are currently seeking.
She is also bullish on ETH’s potential, citing its role in decentralized finance and yield-bearing capability.
Price Action: At the time of writing, ETH was trading at $2,468.31, down 0.77% in the last 24 hours, according to data from Benzinga Pro.
Solana traded at $101.97, down 2.45% from the previous day. HYPE traded down 3.13% to $83.90.
Photo Courtesy: SG SHOT on Shutterstock.com
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