Solana’s Growth Potential: Bitwise Executive Sees 10x Expansion
The chief investment officer of Bitwise, Matt Hougan, says he is optimistic about the layer-1 blockchain Solana. He cites two primary characteristics that set it apart from rivals like Ethereum as the reason for this optimism.
I love investments that give me two ways to win,
Hougan
He clarifies that Solana is placing a wager on the expansion of the market for tokenization infrastructure and stablecoins. He thinks it’s a wise decision and believes it will capture an increasingly larger portion of that market.
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. 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.
Hougan
Solana Surges as Institutions Like Western Union Adopt Blockchain
Ethereum continues to lead the market by a wide margin. According to data aggregator DefiLlama, it has the greatest stablecoin market capitalization, with over $163 billion and a total value locked of over $85 billion. With a total locked value of over $11.3 billion and a stablecoin market capitalization of over $14.9 billion, Solana remains far behind. But according to Hougan, BNB Smart Chain, Tron, and Solana are some of the top challengers for the throne.
He also believes that Solana is gaining increasing popularity among institutions. Western Union, a financial services provider, for instance, on Tuesday implemented the Solana blockchain into its stablecoin settlement system.
It’s a newer asset and is playing catch-up against its peers in winning institutional mandates, but it’s gaining ground. If I’m right, the combination of a growing market and a growing market share will be explosive for Solana. Just as with Bitcoin.
Hougan
Two Ways to Profit from Bitcoin, According to Bitwise CIO
Hougan concurred with Solana that there are two paths for Bitcoin to succeed. He clarified that in order for him to profit, either the global store-of-value market expands or Bitcoin gains a larger market share.
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.
Hougan
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