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Bitwise CIO: Solana Will Be the Next Breakout Star

Bitwise CIO: Solana Will Be the Next Breakout Star

ForesightNews 速递ForesightNews 速递2025/09/10 07:52
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By:ForesightNews 速递

Solana now possesses all the factors needed for an explosive market rally by the end of the year.

Solana already possesses all the elements necessary for an explosive rally by the end of the year.


Written by: Matt Hougan, Chief Investment Officer at Bitwise

Translated by: Luffy, Foresight News


Over the past 18 months, the “formula” for achieving high returns in cryptocurrency has been quite clear: add “Exchange-Traded Product (ETP) inflows” as an ingredient, combine it with “large-scale corporate treasury accumulation,” and you can reap substantial returns.


Bitcoin has followed this formula, rising from $40,000 in January 2024 to $112,000 today; Ethereum adopted the same strategy in April 2025, and its price tripled to $4,500.


It’s no surprise that this “formula” works—at its core, it’s the classic law of supply and demand at play:


  • Since January 11, 2024, the Bitcoin network has produced 322,681 bitcoins, while ETPs and corporations have bought more than 1.1 million bitcoins;
  • Since April 15, 2025, the Ethereum network has produced 388,568 ETH, but ETPs and corporations have accumulated as much as 7.4 million ETH.


When demand exceeds supply, prices naturally rise.


Why do I believe Solana will be the next breakout?


Solana already has the conditions to replicate the above path.


Multiple issuers, including Bitwise, Grayscale, VanEck, Franklin Templeton, Fidelity, Invesco, and Canary Capital, have submitted applications to launch spot Solana ETPs. The U.S. Securities and Exchange Commission (SEC) will rule on these applications by October 10, 2025 (UTC+8) or earlier, which means that several institutions may simultaneously launch spot Solana ETPs in Q4 2025.


Meanwhile, just this past weekend, three leading institutions—Galaxy Digital, Jump Crypto, and Multicoin Capital—jointly committed $1.65 billion in cash and stablecoins to Forward Industries, a large publicly traded Solana treasury company. After the transaction is completed, this new company will begin buying SOL tokens, staking them, and striving for excess returns.


Notably, Forward Industries has appointed Multicoin Capital co-founder Kyle Samani as chairman. Multicoin was one of the earliest investors in Solana, and Samani is one of Solana’s most persuasive and steadfast advocates. Previously, Michael Saylor, as executive chairman of the bitcoin treasury company Strategy, played a key role in promoting bitcoin; Tom Lee, as chairman of the ethereum treasury company BitMine, championed ethereum. If Samani can similarly convey Solana’s value proposition on platforms such as CNBC, Bloomberg, and Fox Business, it will help drive a flywheel effect of investor demand.


What is Solana’s core appeal?


Of course, simply having ETP approval and the establishment of a treasury company is not enough to guarantee investor buy-in. These investment vehicles must have fundamental logic that attracts investors. A typical example: although the ethereum ETF was approved as early as June 2024, it wasn’t until April 2025 (UTC+8), when the market’s interest in stablecoins surged, that ethereum, as the “number one blockchain for stablecoins,” truly ignited a rally.


So, what exactly is Solana’s core appeal?


Solana is a competitor to ethereum and is essentially a programmable blockchain capable of supporting stablecoins, tokenized assets, DeFi applications, and more. Its biggest selling point is that, compared to ethereum, it can process a higher number of transactions per second (TPS), has extremely low transaction costs, and offers rapid finality (the speed at which a transaction becomes irreversible). In fact, the blockchain recently underwent a major technical upgrade: transaction finality time was reduced from about 12 seconds to 150 milliseconds—faster than the blink of an eye. After this upgrade, Solana will be among the fastest blockchains in the world.


Solana achieves this performance thanks to a fundamentally different technical architecture from ethereum: it does not rely on Layer 2 solutions, making it simpler for ordinary users.


However, critics argue that Solana’s high performance comes at a key trade-off: it is less decentralized and its network stability is more fragile (making it more prone to outages and other issues).


Even so, Solana has managed to attract a large number of users: among programmable blockchains, its stablecoin liquidity ranks third (behind only ethereum and Tron); its scale of tokenized assets ranks fourth and is growing rapidly—since the beginning of this year, its tokenized assets under management have increased by 140%. Supporters of Solana believe it is currently the only blockchain fast enough to support mainstream asset tokenization on a global scale.


Key differences between Solana, Bitcoin, and Ethereum


There is a notable major difference between bitcoin, ethereum, and Solana: Solana is much smaller in scale.


As of September 7, 2025 (UTC+8), the market capitalizations of the three are: bitcoin $2.22 trillion, ethereum $519 billion, and Solana $116 billion. In other words, Solana’s scale is only 1/20th that of bitcoin and less than 1/4th that of ethereum.


From the perspective of blockchain scale, even a relatively small amount of capital inflow into Solana could have a significant impact on its price. For example, the $1.6 billion in SOL that Forward Industries plans to buy, if scaled proportionally to bitcoin, would be equivalent to a $33 billion bitcoin purchase. However, this advantage is partially offset by Solana’s higher annual inflation rate (about 4.3%), compared to bitcoin’s 0.8% and ethereum’s 0.5%.


Even so, Solana remains quite attractive at present. My suggestion: closely monitor Solana’s developments in the coming months.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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