Bitwise chief funding officer Matt Hougan says his bullish outlook on layer-1 blockchain Solana stems from two important elements that set it other than rivals like Ethereum.
“I really like investments that give me two methods to win,” Hougan said 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’ll “win an rising share of that market,” which “look like good bets to me.”
“I believe individuals dramatically underestimate how a lot and the way rapidly 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 provides quick, user-friendly expertise, backed by a terrific group with a ship-fast angle.”
Hougan additionally sang Solana’s praises earlier this month, predicting the blockchain would turn out to be the Wall Road community of alternative for stablecoins, whereas Bitwise CEO Hunter Horsley has additionally been spruiking it, arguing that Solana may acquire over Ethereum within the staking exchange-traded fund market, citing its design as extra favorable for traders.
Solana is way from rivaling Ethereum for now
Ethereum stays the market chief by a big margin, with the biggest stablecoin market capitalization of over $163 billion and a complete locked worth exceeding $85 billion, according to knowledge aggregator DefiLlama.
Solana is way under, with a stablecoin market capitalization of over $14.9 billion and a complete locked worth of more than $11.3 billion for Solana.
Nonetheless, Hougan mentioned Tron, Solana, and BNB Sensible Chain are among the many “prime challengers” for the crown.
Solana is gaining floor with institutional curiosity
He additionally believes that institutional curiosity in Solana is rising, with offers reminiscent of 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 taking part in catch-up towards its friends in profitable institutional mandates, however it’s gaining floor,” Hougan mentioned.
“If I’m proper, the mixture of a rising market and a rising market share will probably be explosive for Solana. Simply as with Bitcoin.”
Associated: Can Solana rival Wall Street? Kyle Samani thinks so
Bitwise has merchandise tied to Solana, such as its staking ETF, which launched on Tuesday.
Bitcoin additionally has two methods to win
Together with Solana, Hougan mentioned Bitcoin has two methods to win as effectively, by a “guess” that the worldwide retailer of worth market will develop, and Bitcoin (BTC) will take an rising share, which solely requires one to “occur for me to do effectively.”
“A mistake many traders 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 prior to now 20 years, from beneath $3 trillion in 2005 to $27.5 trillion at the moment.”
Journal: Sharplink exec shocked by level of BTC and ETH ETF hodling — Joseph Chalom
