- Bitwise CIO Matt Hougan says Solana may very well be Wall Road’s go-to blockchain for stablecoins and tokenization.
- Ethereum stays dominant with over 60% of the stablecoin market, dwarfing Solana’s 4.7% share.
- Bitwise awaits SEC’s resolution on its spot Solana ETF, due October 16, whereas Solana trades greater than 20% off its all-time excessive.
Bitwise’s Chief Funding Officer, Matt Hougan, is betting large on Solana. In a latest speak with Solana Labs’ Akshay Rajan, he stated flat out, “Solana is the brand new Wall Road.” In keeping with Hougan, conventional finance audiences usually wrestle to wrap their heads round Bitcoin—it feels too summary, too onerous to floor in one thing tangible. However stablecoins and tokenization? That’s totally different. They’ll see how these instruments might reshape funds, shares, bonds, even actual property. And after they ask which blockchain might energy that shift, Solana’s pace and throughput stand out. Hougan pointed to latest enhancements in settlement, dropping from 400 microseconds to simply 150. That type of pace, he stated, is sensible to Wall Road as a result of that’s precisely how they prefer to commerce.
Ethereum Nonetheless Leads the Stablecoin Market
Even with the hype, Ethereum is much from shedding its crown. Stablecoins on Solana have grown to round $13.9 billion, giving it about 4.7% of the market. However Ethereum nonetheless towers above with $172.5 billion in on-chain stablecoin worth—holding near 60% market share on its base layer alone. Add in Ethereum’s Layer-2 networks like Arbitrum, Base, and Polygon, and the share climbs previous 65%. Offchain Labs’ AJ Warner lately commented that whereas Solana is thrilling, the strongest ecosystem for brand new stablecoins nonetheless lies contained in the Ethereum Digital Machine. TVL numbers aren’t all the pieces, he famous, however they inform a fairly clear story.
Bitwise Highlights Solana’s ETF and Staking Benefit
This isn’t the primary time Bitwise has thrown weight behind Solana. CEO Hunter Horsley additionally spoke about it at Token2049 in Singapore, highlighting a singular benefit Solana might have over Ethereum within the staking ETF race. Solana’s unstaking interval is way sooner, which is essential for ETFs since traders usually count on to maneuver funds shortly. Horsley argued this might give Solana the sting in attracting ETF demand, whilst Ethereum stays the default alternative for many establishments as we speak.
SEC Resolution Looms Over Spot Solana ETF
Bitwise already runs a product referred to as the Bitwise Bodily Solana ETP, backed one-to-one with precise SOL, however curiosity to date has been restricted—nearly $30 million beneath administration, a drop in comparison with BTC or ETH-based funds. Nonetheless, the agency has its eyes on one thing greater: a spot Solana ETF at the moment sitting within the SEC’s queue. A last resolution is anticipated on October 16. On the time of writing, Solana was buying and selling round $227, down 2% on the day and nonetheless greater than 22% under its January 2025 peak. Whether or not the SEC provides the inexperienced mild or not, Bitwise is clearly betting that Solana has a critical function to play within the subsequent part of Wall Road’s crypto adoption.
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