Solana has been a recent better than larger cryptos – ahead of 24% over the past month – but it could just be the precursor to an epic ending of the year, writes Bitwise Cio Matt Hougan.
“For the past 18 months, the recipe for strong return in crypto has been ready,” Hougan said. “Take some ETP flow, add strong purchases of businesses, and voilà – you get big returns.”
Hougan recalled that “recipe” sent Bitcoin from $ 40,000 to its current level and ether more than tripling, and the same setup is formed around the sun.
Seven major asset managers – including Bitwise even with grayscale, faith and Vaneck – have led to launch Spot Solana ETPs. The US Securities and Exchange Commission must decide on them by October 10th. If even a few are approved, retail and institutional investors could soon buy sun in the same way they would a stock.
That’s not the only headwind, Hougan said. This last weekend traded a previously quiet public microcap, forward -looking industries (Ford)announced that it had collected $ 1.65 billion from Crypto Investment Heavyweights Galaxy Digital, Jump Crypto and Multicoin Capital.
The company’s playbook is simple: buy sun, spell it and generate dividend-transformer Solana himself into a revenue-generating asset on a public balance. At the helm is Kyle Samani, co -founder of Multicoin and one of Solana’s earliest masters.
Hougan compares Samani with Michael Saylor from Bitcoin or Tom Lee from Ethereum – visible, vocals and able to transform a technical tale into a mainstream headline. Still, Solana has to earn attention.
Its pitch is speed. Unlike Ethereum, which uses additional layers to scale, Solana runs everything on a chain. A new upgrade – soon to go live – will shrink transaction finality time from 12 seconds to 150 milliseconds. Transaction fees remain below one cent.
These winnings come with varies, allowed Hougan. Solana’s critics claim that its structure is more centralized than other blockchains, which potentially leaves it exposed to network failure. Supporters meet that it is the only chain that is quick and cheap enough to support high-volume cases-as-tokenized assets or stablecoins on the world.
And growth is happening. Solana is now third in stableecoin liquidity and fourth in tokenized assets, with asset volume up 140% this year, Hougan said.
Then there is its size. With a market capital of $ 116 billion, Solana is still a small fish compared to Bitcoin’s $ 2.2 trillion or Ethereums $ 519 billion. This means that smaller influxes can move the needle in a larger ways. According to Hougan, Forward Industries’ $ 1.65 billion could have the same impact on sun as an investment of $ 33 billion on BTC.
That’s why he looks closely. “My suggestion?” Hougan wrote. “Keep an eye on Solana.”
