tl;dr
Bitwise's Matt Hougan predicts Solana (SOL) could surge 10x as institutional interest grows, citing its speed, scalability, and community-driven ethos. Despite Ethereum's dominance, Solana's stablecoin market cap and TVL are rising, with Western Union adopting the blockchain for stablecoin settlemen...
**Bitwise’s Matt Hougan Bulls Solana, Sees 10x Growth Potential as Institutional Interest Grows**
Bitwise Chief Investment Officer Matt Hougan has voiced a strong bullish outlook for Solana (SOL), citing the blockchain’s unique advantages over rivals like Ethereum. In a recent X post, Hougan highlighted two key factors that position Solana as a compelling investment: its potential to capture a growing share of the stablecoin and tokenization infrastructure market, and its user-friendly technology backed by a dedicated community.
Hougan emphasized that Solana’s “two ways to win” strategy—betting on both market growth and increased market share—makes it an attractive bet. “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,” he said, underscoring his confidence in the sector’s expansion.
While acknowledging Ethereum’s current dominance, Hougan argued that Solana’s speed, scalability, and community-driven ethos give it a competitive edge. “It offers fast, user-friendly technology, backed by a great community with a ship-fast attitude,” he noted. This sentiment aligns with broader institutional interest in Solana, exemplified by Western Union’s recent adoption of the blockchain for its stablecoin settlement system.
### Solana vs. Ethereum: A Growing Challenge
Despite Solana’s momentum, Ethereum remains the market leader, with a stablecoin market cap of over $163 billion and total locked value (TVL) exceeding $85 billion, according to DefiLlama. Solana, by contrast, has a stablecoin market cap of $14.9 billion and TVL of $11.3 billion. However, Hougan pointed to Solana, Tron, and BNB Smart Chain as top challengers to Ethereum’s throne.
Hougan also praised Solana’s potential to become the “Wall Street network of choice for stablecoins,” a view echoed by Bitwise CEO Hunter Horsley, who suggested Solana could outpace Ethereum in the staking ETF market. Bitwise has already launched a Solana staking ETF, signaling its commitment to the blockchain.
### The Bigger Picture: Bitcoin’s Dual Path to Success
Hougan’s bullishness extends beyond Solana. He also highlighted Bitcoin’s dual potential to benefit from both the growth of the global store of value market and its increasing market share. “The global store of value market has grown by 10x in the past 20 years,” he noted, citing its expansion from $3 trillion in 2005 to $27.5 trillion today.
This “two-way bet” model, he argued, is critical for investors to consider. “A mistake many make is focusing too much on Bitcoin winning market share and too little on the growth of the market itself,” Hougan said, stressing the importance of long-term trends.
### Institutional Adoption and Future Prospects
Hougan acknowledged that Solana is still catching up to Ethereum in institutional adoption but pointed to growing momentum. “It’s a newer asset and is playing catch-up against its peers in winning institutional mandates, but it’s gaining ground,” he said. If Solana continues to secure partnerships like Western Union’s and expand its ecosystem, Hougan believes the blockchain could see explosive growth, akin to Bitcoin’s trajectory.
As the blockchain space evolves, Solana’s blend of performance, community, and institutional appeal positions it as a key player. With figures like Hougan championing its potential, the narrative around Solana is gaining traction—and investors are taking notice.