Bitwise Chief Investment Officer Matt Hougan has reiterated his bullish stance on Solana (SOL), highlighting two significant opportunities he believes will drive its long-term success.
In a post on X, Hougan expressed his preference for investments offering multiple avenues for gains. He views Solana as a strategic investment that benefits from both the expanding stablecoin and tokenization markets, as well as its capacity to capture an increasing share of these burgeoning sectors.
Hougan stated, "I think people dramatically underestimate how much and how quickly these technologies will remake markets. It’s easy for me to imagine this market growing by 10x or more."
Hougan: Solana’s Growth Potential Is “Explosive”
While affirming his positive outlook for Ethereum and other major layer-1 blockchains, Hougan pointed to Solana's advantages. He cited its user-friendly, fast, and efficient design, coupled with a robust developer community, as key differentiators. "I like Solana’s odds of winning a larger share of this market," he added.
Hougan's remarks coincide with Bitwise's expansion of its Solana-linked products, including the recently launched Bitwise Solana Staking ETF in Europe.
Evidence suggests a rapid increase in institutional interest in Solana. Hougan highlighted Western Union's recent adoption of the SOL chain for its stablecoin settlement system as a critical step towards mainstream acceptance. He noted, "It’s a newer asset and is playing catch-up against its peers in winning institutional mandates, but it’s gaining ground."
Institutional Adoption and "Two Ways to Win"
Data from DefiLlama indicates that Ethereum continues to lead the decentralized finance space, with over $163 billion in stablecoin market capitalization and $85 billion in total value locked (TVL).
In contrast, Solana holds $14.9 billion in stablecoin value and $11.3 billion TVL, though it is demonstrating strong growth. Hougan identified Tron, Solana, and BNB Smart Chain as the primary contenders challenging Ethereum's dominance.
"If I’m right, the combination of a growing market and a growing market share will be explosive for Solana, just as with Bitcoin," he asserted.
Hougan also drew parallels to Bitcoin, explaining that it too has "two ways to win": as a store of value and as an increasing share of a rapidly expanding global wealth market. He elaborated, "A mistake many investors make is focusing too much on Bitcoin’s market share and too little on the market’s growth."
With increasing institutional adoption, greater regulatory clarity, and expanded ETF exposure, Hougan's perspective suggests that Solana's next phase of development could mirror Bitcoin's initial significant growth period.