Bitwise’s Chief Investment Officer, Matt Hougan, shared his optimistic forecast regarding Solana, suggesting it stands a good chance of capturing a significant portion of the market for stablecoins and tokenization.
“I favor investments that provide me with two chances for success,” Hougan stated in a recent post, denoting that Solana (SOL) bets on the expansion of stablecoin and tokenization market, and it is likely to secure a greater market share—a prospect he considers promising.
Hougan elaborated, noting, “I believe many are drastically underestimating how quickly these technologies will reshape markets. I can envision this market multiplying by ten times or more.”
Also, he noted,
“I maintain strong confidence in Ethereum and a few other blockchains. However, I feel Solana has solid potential to gain a larger market share, due to its swift and user-friendly technology, coupled with a dedicated community ready to innovate quickly.”
Previously, Hougan highlighted Solana’s potential, suggesting it could emerge as the preferred network for stablecoins on Wall Street, while Bitwise CEO Hunter Horsley has touted it as a leading contender against Ethereum in the staking ETF market, highlighting its favorable structures for investors.
Solana’s Competitive Positioning
Currently, Ethereum dominates the market with a stablecoin market cap exceeding $163 billion and total locked value surpassing $85 billion, as identified by DefiLlama. In contrast, Solana’s stablecoin market cap sits at approximately $14.9 billion, with total locked assets of nearly $11.3 billion.
However, Hougan pointed out that Tron, Solana, and BNB Smart Chain are significant challengers in the blockchain sector.
Institutional Interest in Solana
He also remarked that interest from institutional investors in Solana is on the rise, citing recent deals like Western Union’s adoption of Solana’s blockchain for its stablecoin settlement systems.
“It’s a newer asset and catching up with competitors in securing institutional mandates, but progress is evident,” Hougan stated.
Should his predictions hold true, he suggested that the conjunction of a growing market and Solana’s increasing share may unleash explosive growth, similar to that of Bitcoin.
Bitcoin’s Potential
In addition to Solana, Hougan addressed Bitcoin, claiming it also has dual avenues for profitability, contingent upon the growth of the global store of value market, of which Bitcoin is expected to capture a larger portion.
“Many investors focus too heavily on Bitcoin’s market share without considering the overall market growth. The global store of value market has expanded tenfold over the past two decades, from just below $3 trillion in 2005 to about $27.5 trillion today.”
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Bitwise has several products linked to Solana, such as a recently launched staking ETF.
