Matt Hogan, chief investment officer at Bitwise, believes there are two main reasons why he is bullish on Layer 1 blockchain Solana versus competitors such as Ethereum.
“I love investments that give you two ways to win,” Hogan said in an X post on Thursday, explaining that Solana (SOL) is “betting” that the stablecoin and tokenized infrastructure market will grow and will “grow our share in that market,” adding, “That seems like a good bet to me.”
“I think people vastly underestimate how much and how quickly these technologies will reshape the market. It’s easy to imagine this market growing 10x or more,” Hogan added.
“I am very bullish on Ethereum and have opted for other blockchains, but I like the potential for Solana to capture a larger share of this market. Solana offers fast, user-friendly technology backed by a great community with a nimble attitude.”
Hogan also praised Solana earlier this month, predicting that blockchain would become Wall Street’s network of choice for stablecoins, while Bitwise CEO Hunter Horsley also chimed in, arguing that Solana’s design is more favorable to investors and that Solana could outperform Ethereum in the staking exchange-traded fund market.
Solana is still far from comparable to Ethereum
Ethereum continues to be the market leader by a wide margin, with the stablecoin market cap up to over $163 billion and the total amount locked over $85 billion, according to data aggregator DefiLlama.
Solana is far below, with a stablecoin market cap of over $14.9 billion and Solana’s total locked value of over $11.3 billion.
However, Hogan said Tron, Solana and BNB Smart Chain are among the “top challengers” to the crown.
Solana is gaining interest from institutional investors and increasing its standing
He also believes institutional interest in Solana is increasing with deals such as financial services company Western Union adopting the Solana blockchain for its stablecoin payment system on Tuesday.
“This is a new asset and we are catching up with our peers in terms of gaining authority from institutions, but we are gaining ground,” Hogan said.
“If I’m right, the combination of market growth and increasing market share will be explosive for Solana, just like it was for Bitcoin.”
Related: Can Solana compete with Wall Street? Kyle Samani thinks so.
Bitwise has products related to Solana, including a staking ETF launched on Tuesday.
There are two ways to win with Bitcoin.
Hogan, along with Solana, said there are two ways to win for Bitcoin as well: by betting that the global store of value market will grow, and by betting that Bitcoin (BTC)’s share will grow, and all it takes is one that “just happens to work out.”
“The mistake many investors make is to focus too much on Bitcoin gaining market share and not too much on growing the market. The global store of value market has grown tenfold over the past 20 years, from less than $3 trillion in 2005 to $27.5 trillion today.”
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