Positive flywheels are incredible for asset price on the way up, and extremely damaging when they start to unwind.

Ethereum experience two such major waves:

1) extreme demand for ICOs, which began to unwind as project teams sold their warchests

2) DeFi summer, which began to unwind as yields collapsed and vamp L1s sprung up offering higher multiples

Solana’s first run up was largely fueled by SBF and co doing all sorts of incredible financial engineering.

During its resurrection it felt the benefits of its first true native asset demand flywheel - pumpfun.

Now it faces the dangerous reality of that flywheel unwinding…and the market has warned that this was coming for months now.

What do you think happens to Solana the asset if every pump coin post-TGE becomes automatically paired with asset/PUMP instead of asset/SOL?

Or what do you think happens to demand if pumpchain comes into existence?

I am thankful that there really aren’t any of those flywheels currently active on ETH. We may still have a chance.