Bitwise Executive Reveals Two Explosive Growth Catalysts for Solana Network
Solana's poised for a massive breakout—and a Bitwise insider just pinpointed exactly why.
The DeFi Dominance Play
Solana's swallowing Ethereum's lunch in decentralized finance. Transaction speeds that leave competitors choking on digital dust while fees stay laughably low. The network's becoming the go-to for traders tired of paying mortgage-sized gas fees for simple swaps.
The Institutional On-Ramp
Wall Street's finally waking up to what crypto natives knew years ago. Bitwise sees traditional finance flooding in once the regulatory fog clears—because nothing gets bankers excited like infrastructure that actually works at scale. They'll probably claim they discovered it themselves, naturally.
While Bitcoin maximalists debate block sizes and Ethereum fans wait for the next upgrade, Solana's quietly building the future. Two massive growth engines firing up simultaneously—this isn't just another altcoin story, it's infrastructure becoming inevitable.
TLDR
- Bitwise Chief Investment Officer Matt Hougan says Solana gives investors two distinct ways to profit from blockchain growth.
- Hougan believes the stablecoin and tokenization markets will grow by 10 times or more in coming years.
- Western Union recently chose Solana as the underlying blockchain for its new stablecoin product announcement.
- Hougan compares Solana’s current opportunity to bitcoin’s rise over the past 15 years in the store-of-value market.
- Solana boasts a $107 billion market capitalization, accounting for 14% of the combined market capitalization of the top blockchain networks.
Solana presents investors with two distinct pathways to profit, according to Bitwise Chief Investment Officer Matt Hougan. He predicts that the network will capture a substantial market share in the stablecoin and tokenized asset sectors. Hougan shared his optimistic outlook in a detailed thread on X on Thursday, October 10.
Solana Positioned to Lead Blockchain Infrastructure Growth
The stablecoin and tokenization markets stand ready for explosive expansion, Hougan believes. He believes markets underestimate the speed at which these technologies will transform financial systems. The executive stated he can easily imagine this market growing tenfold or more.
Solana offers fast and user-friendly technology backed by a strong community, Hougan explained. The network maintains a ship-fast attitude that appeals to developers and businesses alike. Western Union recently chose solana as the underlying blockchain for its new stablecoin product.
1/ The best crypto investments give you two ways to win. A thread exploring one reason I’m so bullish on Solana.
🧵
— Matt Hougan (@Matt_Hougan) October 30, 2025
This decision demonstrates how established financial institutions increasingly turn to Solana for real-world applications. The network remains newer compared to Ethereum, but rapidly closes the institutional adoption gap. Hougan noted that Solana continues to gain ground in winning institutional mandates across the industry.
Market Share Strategy Mirrors Bitcoin’s Historical Success
Hougan compared Solana’s current position to Bitcoin’s rise over the past decade and a half. Bitcoin benefited from both market expansion and increasing dominance within that growing space. The investment executive emphasized he loves investments that provide two ways to win.
When investors buy bitcoin, they bet on store-of-value market growth and bitcoin’s rising share. Only one condition needs to materialize for the investment to succeed, Hougan explained. Bitcoin’s store-of-value market expanded tenfold from under $3 trillion in 2005 to $27.5 trillion today.
Gold and bitcoin itself led this dramatic expansion over two decades. Bitcoin could increase by 10 times again if this pattern repeats, while maintaining its current market position. Hougan argues Solana could follow a similar trajectory if blockchain infrastructure grows proportionally.
Competition Among Leading Blockchain Networks Intensifies
Several impressive Layer 1 blockchains currently serve the stablecoin and tokenization infrastructure market. ethereum holds the market leader position with the largest share of stablecoin issuance and trading. The network also commands a leading share of fund tokenization activities globally.
Solana competes alongside TRON and Binance Smart Chain as a primary challenger to Ethereum’s dominance. These four networks together hold a combined market capitalization of approximately $768 billion. Solana represents $107 billion of this total, accounting for 14% of the combined market.
The network’s performance, usability, and culture provide Core advantages in this competitive landscape. Hougan expects Solana to capture a growing portion of the infrastructure market share in the future. He suggested the combination of market growth and rising share will prove explosive for value.
Crypto Markets Remain Unpredictable Despite Bullish Outlook
Hougan cautioned that crypto markets continue to exhibit high volatility and unpredictability. He recommended approaching the crypto market with humility, given inherent uncertainty. Even seasoned experts cannot predict precisely how market dynamics will unfold over time.
However, stacking odds favorably by getting two high-conviction bets helps investors position themselves well. Hougan’s comments arrived less than a month after crypto experienced significant single-day declines. The market wiped nearly $200 billion off total capitalization during that downturn.
Bitcoin fell more than 15% within hours on October 10, briefly trading near $104,000. Solana, Ethereum, and other primary tokens also dropped sharply before rebounding later that week. Market data providers reported that over $19 billion worth of Leveraged positions were liquidated within 24 hours.
