- Cantor Fitzgerald began coverage on three public firms building Solana-based treasuries, viewing SOL as a rising institutional asset akin to Bitcoin’s corporate reserve role.
- Analysts see SOL as a compelling treasury option over Ethereum, citing faster developer growth, better optimisation for transaction-heavy use cases, and growing adoption.
Investment bank Cantor Fitzgerald said it has started coverage on three publicly traded companies building Solana-based treasuries, and believes SOL will become an institutional darling as more firms stockpile the asset.
As per a report from Bloomberg, the investment bank initiated coverage on DeFi Development Corp., Upexi, and Sol Strategies, each of which has shifted its corporate reserves strategy toward acquiring SOL in a move that echoes Bitcoin-focused strategies seen with firms like Strategy (formerly MicroStrategy), which recently bought more Bitcoin.
While the analysts stopped short of placing Solana in the same category as Bitcoin in terms of being a true reserve asset, they said the logic behind using SOL as a corporate treasury play is compelling, particularly when stacked against Ethereum:
Developer growth on SOL has far exceeded that on ETH recently, and we expect this to continue. Using SOL over ETH as a treasury asset makes sense: these businesses think that SOL can overtake ETH, which currently has a market cap that is ~259% higher.
Cantor Fitzgerald.Related: Trident Digital Tech Eyes $500M XRP Treasury as Shares Plunge Over 30%
In this context, the SOL accumulation strategy becomes a long-term investment in transactional activity and developer adoption being the main focus in the years ahead.
If BTC has solidified itself as the foundational reserve currency, or asset, for the digital economy, Solana aims to be the technology that powers transactions and marketplaces in the digital economy.
Cantor Fitzgerald.Solana to Dominate in the Next Five Years?
So, the overall premise isn’t complicated: Bitcoin is crypto’s reserve asset and Ethereum commands the most value locked, but Cantor argues Solana is better optimised for transaction-heavy use cases as well as developer use cases and traction.
They’re not alone. According to Electric Capital, Solana has become the leading non-EVM chain for new developers. By late 2024, it had attracted over 7.6k new developers, an 83% increase year-over-year, outpacing Ethereum.
Out of the nearly 40K developers who entered the crypto space that year, Solana captured over 20%, making it the most attractive blockchain for founders and projects.
Related: Franklin Templeton’s CEO Predicts a Five-Year Financial Revolution Fuelled by Blockchain
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