- Matt Hougan, CIO at Bitwise, says Solana gives investors two ways to win — the overall size of the global stablecoin and asset tokenisation markets increasing, or Solana increasing its share.
- Currently Ethereum dominates these markets, but Hougan believes Solana is poised to increase its market share — he also believes the overall market size could easily 10x.
- Hougan’s comments should be understood in the context that Bitwise launched BSOL, its Solana Staking ETF, earlier this week.
Now is a good time to invest in Solana, if you listen to Matt Hougan, chief investment officer at crypto asset investment firm Bitwise.
In a blog post published October 29, Hougan argued that an investment in Solana currently offers “two ways to win”:
- Through the global stablecoin and tokenisation infrastructure market growing; or
- Through Solana taking an increasing share of that market.
Hougan said that, in his opinion, both possible ways of winning “seem like good bets.” While Solana may indeed be a great investment, it should be noted that Bitwise, the firm Hougan works for, launched its Solana staking ETF just days ago.
So, what’s Hougan’s case? The growth of stablecoins and asset tokenisation will “remake markets”, he believes.
Over time, I suspect nearly all payments will be in stablecoins and nearly all assets will be tokenized. The blockchains that facilitate this growth will be extremely valuable. It’s easy to imagine this market growing by 10x or more.
Matt Hougan, BitwiseEthereum is far and away the leader in both markets — but despite Solana representing a relatively small share of the stablecoin and asset tokenisation markets, Hougan thinks it’s in a strong position to increase its share of the market.
“While Solana is an important part of this market, it’s relatively small at $107 billion, representing just 14% of the overall market. But that’s also what makes it a good candidate for both bets,” Hougan said.
I’m bullish on Ethereum and other blockchains, but I also like Solana’s odds of winning a larger share of this market. It offers fast, user-friendly technology, backed by a great community with a ship-fast attitude.
Matt Hougan, BitwiseRelated: Bitwise Seeks Approval for Stablecoin & Tokenisation ETF Bridging Stocks and Crypto
Stablecoin and Tokenisation Markets Set to Explode: Hougan
Hougan also believes the size of the overall stablecoin and tokenisation markets are set to explode — meaning that even if Solana were to simply maintain its current market share, its value would likely increase as the overall markets increase.
Hougan said the current combined market cap of the largest blockchains challenging for stablecoin and tokenisation dominance stands at around US$768 billion: that includes Ethereum, Tron, Solana and Binance Smart Chain.
“I have a lot of confidence that the stablecoin and tokenization infrastructure market will grow,” Hougan said, adding that, “I think people significantly underestimate how much these technologies will remake markets.”
Related: Bitwise Solana ETF Extends Record-Breaking Debut with US$72M in Second-Day Trading
Hougan posits that if both ways of winning eventuate we could see huge growth for Solana.
If I’m right, the combination of a growing market and a growing share of that market will be explosive for Solana.
Matt Hougan, BitwiseCredit: Source link
