Matt Hougan of Bitwise affirmed that Solana possesses favorable prospects for securing an increased proportion of both the digital dollar and asset tokenization sectors.
The optimistic forecast regarding the Solana layer-1 network by Bitwise Chief Investment Officer Matt Hougan is rooted in two primary elements that fundamentally distinguish it from rivals such as Ethereum.
“I love investments that give me two ways to win,”
Hougan said in an X post on Thursday,
He articulated that a calculated “wager” is being placed by Solana (SOL) on the expansion of the underlying structures for both digital dollars and asset tokenization, and that it will secure a progressively dominant portion of that specific industry, which are perceived by him as advantageous prospects.
“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 added.
“I’m very bullish on Ethereum and select other blockchains. But I do like Solana’s odds of winning a larger share of this market. It offers fast, user-friendly technology, backed by a great community with a ship-fast attitude.”
Solana Still Far from Matching Ethereum’s Dominance
Solana’s attributes were also extolled by Hougan earlier in the current month, when he forecasted that the blockchain would evolve into the preferred institutional platform for digital dollar assets. Concurrently, Bitwise CEO Hunter Horsley has likewise been promoting it, contending that Solana could surpass Ethereum in the market for staking exchange-traded funds, on the basis that its underlying framework is considered more advantageous for investors.
Ethereum maintains its position as the clear frontrunner within the market, with the most substantial market value for digital dollars, exceeding $163 billion, and a total sum of assets under management that surpasses $85 billion, figures are provided by the data analysis service DefiLlama.
Solana is positioned considerably lower, with the aggregate market value of its digital dollars surpassing $14.9 billion, and a total value of assets under management that is more than $11.3 billion.
Nevertheless, Hougan mentioned that Tron, Solana, and the BNB Smart Chain are positioned among the foremost “contenders” vying for the leading position.
He also holds the view that corporate attention toward Solana is intensifying, highlighted by agreements like the one on Tuesday where the financial firm Western Union adopted the Solana network for its digital dollar transaction clearing mechanism.
“It’s a newer asset and is playing catch-up against its peers in winning institutional mandates, but it’s gaining ground,”
Hougan said.
“If I’m right, the combination of a growing market and a growing market share will be explosive for Solana. Just as with Bitcoin.”
Financial instruments connected to Solana are offered by Bitwise, an example of which is its exchange-traded fund for staking, which was introduced on Tuesday.
In addition to Solana, Hougan stated that a dual pathway to success is also presented by Bitcoin, through a specific “wager” that the worldwide market for a value repository will expand, and that Bitcoin (BTC) will acquire a progressively larger portion, where only one of these outcomes is required for favorable results.
“A mistake many investors make is focusing too much on Bitcoin winning market share and too little on the growth of the market. The global store of value market has grown by 10x in the past 20 years, from under $3 trillion in 2005 to $27.5 trillion today.”
