Bitwise CIO Predicts Strong Q4 Rally for Solana Driven by Demand

Solana (SOL) has reached the $225 mark, prompting speculation about a potential bullish rally in Q4. Matt Hougan, CIO at Bitwise, outlined a formula for strong returns based on recent trends from Bitcoin (BTC) and Ethereum (ETH).

Potential for Solana's Growth

Hougan noted that BTC and ETH have seen significant gains through ETP inflows and corporate treasury purchases.
Multiple issuers, including Bitwise and Grayscale, have filed for spot SOL exchange-traded products (ETPs), expected to receive approval early in Q4.
The SEC delayed decisions on these ETPs until October 16, 2025, but multiple issuers may launch them soon after.
Galaxy Digital, Jump Crypto, and Multicoin Capital have raised $1.65 billion to establish Forward Industries, a SOL-focused treasury company.
Kyle Samani, known for promoting Solana, will lead Forward Industries, potentially enhancing investor interest.

Solana's Competitive Edge

Solana is positioned as a competitor to Ethereum, designed for stablecoins and decentralized finance applications.
A recent upgrade aims to enhance its network speed, while it ranks third in stablecoin liquidity among programmable blockchains.
Solana's market capitalization stands at approximately $120.8 billion, significantly smaller than BTC and ETH.
Increased investment flows into Solana could substantially impact its price due to its lower market cap.
Forward Industries' planned purchases of SOL shares could equate to $33 billion in BTC, despite Solana’s higher inflation rate of 4.3% compared to BTC's 0.8% and ETH's 0.5%.

As of now, Solana is trading at $222, reflecting a 5.1% increase over the past week.

Solana Price Chart