Bitwise’s chief funding officer, Matt Hougan, sees two major causes for his bullishness for layer-1 blockchain Solana over its rivals, together with Ethereum.
“I really like investments that give me two methods to win,” Hougan stated in an X put up on Thursday, explaining that Solana (SOL) is making a “guess” the stablecoin and tokenization infrastructure market will develop, and that it’s going to “win an growing share of that market,” which “seem to be good bets to me.”
“I feel individuals dramatically underestimate how a lot and the way shortly these applied sciences will remake markets. It’s simple for me to think about this market rising by 10x or extra,” Hougan added.
“I’m very bullish on Ethereum and choose different blockchains. However I do like Solana’s odds of profitable a bigger share of this market. It gives quick, user-friendly expertise, backed by an ideal neighborhood with a ship-fast perspective.”
Hougan additionally sung Solana’s praises earlier this month, predicting the blockchain would develop into the Wall Avenue community of selection for stablecoins, whereas Bitwise CEO Hunter Horsley has additionally been spruiking it, arguing that Solana may achieve over Ethereum within the staking exchange-traded fund market, citing its design as extra favorable for buyers.
Solana is way from rivaling Ethereum for now
Ethereum stays the market chief by a major margin, with the most important stablecoin market capitalization of over $163 billion and a complete locked worth exceeding $85 billion, in accordance to knowledge aggregator DefiLlama.
Solana is way under, with a stablecoin market capitalization of over $14.9 billion and a complete locked worth of extra than $11.3 billion for Solana.
Nonetheless, Hougan stated Tron, Solana, and BNB Sensible Chain are among the many “high challengers” for the crown.
Solana is gaining floor with institutional curiosity
He additionally believes that institutional curiosity in Solana is rising, with offers equivalent to these of economic companies firm Western Union adopting the Solana blockchain for its stablecoin settlement system on Tuesday.
“It’s a more recent asset and is enjoying catch-up towards its friends in profitable institutional mandates, however it’s gaining floor,” Hougan stated.
“If I’m proper, the mixture of a rising market and a rising market share shall be explosive for Solana. Simply as with Bitcoin.”
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Bitwise has merchandise tied to Solana, equivalent to its staking ETF, which launched on Tuesday.
Bitcoin additionally has two methods to win
Together with Solana, Hougan stated Bitcoin has two methods to win as properly, by means of a “guess” that the worldwide retailer of worth market will develop, and Bitcoin (BTC) will take an growing share, which solely requires one to “occur for me to do properly.”
“A mistake many buyers make is focusing an excessive amount of on Bitcoin profitable market share and too little on the expansion of the market. The worldwide retailer of worth market has grown by 10x previously 20 years, from underneath $3 trillion in 2005 to $27.5 trillion at present.”
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