The Chief Investment Officer of cryptocurrency asset management firm Bitwise, Matt Hougan, anticipates that Solana will emerge as the favored network for stablecoins and tokenization on Wall Street. Hougan emphasized that Solana’s transaction speed and finality make it particularly appealing despite Ethereum’s current dominance.

“I think Solana is the new Wall Street,” said Hougan, during a discussion with Solana Labs’ Akshay Rajan on October 2. He noted that Bitcoin is often perceived by Wall Street as something difficult to grasp.

He further remarked that the evolving landscape of stablecoins and tokenization is bound to have a significant impact, stating, “Really important people are saying that stablecoins will reinvent payments and tokenization will reinvent stock, bond, commodity, and real estate markets.”

According to Hougan, the blockchain investment strategies favor Solana due to its enhanced speed and efficiency, noting an improvement in transaction settlement times from 400 to 150 microseconds. This aligns well with traditional traders who favor rapid trades.

Ethereum Remains the Stablecoin Leader

Currently, stablecoin supplies in Solana have reached $13.9 billion, translating to a 4.7% market share compared to Ethereum’s vast $172.5 billion stablecoin market, which dominates with a 59% share, increasing to 65% when including Ethereum layer-2 networks.

Offchain Labs’ AJ Warner commented on the total value locked within Solana and Ethereum, asserting that while TVL is essential, the best platform for launching new stablecoins remains Ethereum.

Bitwise’s Positive Outlook on Solana

Bitwise executives have previously endorsed Solana. CEO Hunter Horsley mentioned at Token2049 in Singapore that Solana’s design may offer advantages over Ethereum in the ETF market due to shorter unstaking periods, which is critical for efficient asset return in ETFs.

Additionally, Bitwise’s Solana ETF is currently awaiting approval from the SEC, with a decision expected by October 16.