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Bitwise chief investment officer Matt Hougan expresses that his optimistic perspective on layer-1 blockchain Solana arises from two primary aspects that distinguish it from rivals like Ethereum.
“I appreciate investments offering me two avenues to succeed,” Hougan mentioned in an X post on Thursday, clarifying that Solana (SOL) is wagering that the stablecoin and tokenization framework market will expand, and that it will “capture an increasing portion of that market,” which “appears to be promising bets to me.”
“I believe people significantly underestimate how much and how swiftly these technologies will transform markets. It’s easy for me to envision this market expanding by 10x or more,” Hougan added.
“I’m very optimistic about Ethereum and a select few other blockchains. But I do favor Solana’s chances of claiming a larger slice of this market. It provides swift, user-friendly technology, supported by a fantastic community with a rapid-development mindset.”
Hougan also earlier praised Solana this month, forecasting that the blockchain would become the preferred network for stablecoins on Wall Street, while Bitwise CEO Hunter Horsley has also been endorsing it, contending that Solana could outperform Ethereum in the staking exchange-traded fund sector, highlighting its design as being more advantageous for investors.
Solana is not yet challenging Ethereum
Ethereum continues to lead the market significantly, boasting the largest stablecoin market capitalization of over $163 billion and a total locked value surpassing $85 billion, as per data aggregator DefiLlama.
Solana is significantly lower, with a stablecoin market capitalization exceeding $14.9 billion and a total locked value of over $11.3 billion.
However, Hougan indicated that Tron, Solana, and BNB Smart Chain are among the “leading contenders” for the title.
Solana is attracting institutional interest
He also believes that institutional interest in Solana is on the rise, with arrangements such as financial services company Western Union embracing the Solana blockchain for its stablecoin settlement system on Tuesday.
“It’s a newer asset and is catching up against its competitors in securing institutional mandates, but it’s making progress,” Hougan stated.
“If I’m correct, the combination of a expanding market and a growing market share will be explosive for Solana. Just like with Bitcoin.”
Related: Can Solana rival Wall Street? Kyle Samani believes so
Bitwise has products linked to Solana, such as its staking ETF, which was introduced on Tuesday.
Bitcoin also possesses two ways to succeed
Alongside Solana, Hougan remarked that Bitcoin also has two avenues to prosper, through a “bet” that the global store of value market will increase, and Bitcoin (BTC) will capture a larger share, which only necessitates one to “occur for me to thrive.”
“A common error many investors commit is concentrating too heavily on Bitcoin claiming market share and insufficiently on the expansion of the market. The global store of value market has expanded by 10x over the past 20 years, from beneath $3 trillion in 2005 to $27.5 trillion today.”
Magazine: Sharplink executive astonished by extent of BTC and ETH ETF hold—Joseph Chalom
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