Bitwise CIO Labels Solana as Explosive Investment for Dual Growth
Bitwise CIO Matt Hougan applies his Bitcoin investment framework to Solana, describing potential growth as "explosive."
- Hougan's strategy involves investing where there are "two ways to win" with one position. For Bitcoin: the global 'store of value' market grows, and Bitcoin gains a larger share.
- The current 'store of value' market is estimated at $27.5 trillion, with Bitcoin holding $2.5 trillion. This market expanded 10x in 20 years.
- If Bitcoin only partially displaces gold but closes the gap, its value could drastically increase.
Solana’s Potential Growth
- Solana fits a similar model with two bets: growth in the stablecoin/tokenization market and Solana capturing more market share.
- This market includes blockchains like Ethereum, Tron, Solana, and Binance Smart Chain, valued at $768 billion. Solana's share is $107 billion (14%).
- Confidence exists that these technologies will significantly impact markets, potentially growing 10x or more.
- Solana is known for being fast and user-friendly, attracting institutional interest, exemplified by Western Union's stablecoin initiative on Solana.
Hougan suggests if the stablecoin/tokenization market expands and Solana increases its share, it could result in compounded growth. He emphasizes crypto's unpredictability but highlights assets with dual high-conviction bets, like Bitcoin and now Solana, as favorable investments.
Current SOL price: $186.
