DeutschSolana’s potential is considered huge. The blockchain could even displace market leader Bitcoin – so argues Matt Hougan, investment manager of asset manager Bitwise. For an important target group, SOL is much more attractive than BTC – for the financial institutions. Recently, the financial expert explained the reasons for this.
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Solana Ousting Bitcoin?
Solana may succeed in displacing Bitcoin as the most important cryptocurrency – at least among certain investors. This assessment was expressed by Matt Hougan, investment manager of Bitwise, recently in a conversation with Akshay Rajan of Solana Labs.
“Solana is the new Wall Street,” Hougan introduced his thought. The smart contract platform is thus rising to become a modern platform for the financial industry on the Internet, according to the US-American.
“For them [financial institutions], Bitcoin is difficult to grasp, but they understand what is happening in the area of stablecoins and tokenization. They know that this is of significant importance.”
Solana is already one of the most important blockchains in these areas. It competes with the current market leader Ethereum and with other popular networks such as BNB, Cardano or Sui.
According to Hougan, Solana has already taken the most valuable position here. The network ranks sixth in terms of market capitalization of all cryptos – making it one of the best-known coins – and is considered very modern.
Solana’s throughput is significantly higher than that of market leader Ethereum. Block finalization takes place much faster. Low waiting times and tiny network fees make the use of the blockchain attractive.
“Very important people believe that stablecoins are revolutionizing payments and tokenization [classic financial markets] is revolutionizing.”
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According to Hougan, this conviction is shared by SEC chief Paul Atkins, Andrew Bailey as governor of the Bank of England, and BlackRock board member Larry Fink, for example. To profit from the financial revolution, institutions prefer to invest in SOL, according to Hougan.
Nevertheless, Hougan warns investors against a possible overestimation of the network. With a market capitalization of 127 billion US dollars, Solana only reaches five percent of the size of Bitcoin, which is the undisputed leader with around 2.5 trillion US dollars.
Institutions are less interested in the financial self-assertion that Bitcoin enables for private investors. Bitcoin is considered to be much more decentralized.
SOL Price Growing Massively? That’s why Financial Expert Hougan is Convinced
The fact that Solana has so far only been able to reach a fraction of Bitcoin’s size is of ambivalent significance, Hougan explained in a conversation with Cointelegraph. SOL does not have the market power that BTC has. At the same time, Solana could quickly increase many times over due to its previously low value.
Regulated companies will sooner or later tokenize classic financial products such as bonds, stocks or real estate. However, they would have to decide on a blockchain for this. Because of the good technological basis, it is obvious that the choice will fall on Solana.
“Solana is designed like the new Wall Street,” Hougan argues based on these technological properties. “Solana is deliberately designed to cover this area of application.”
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“Solana achieves its block finalization in an instant” – while main competitor Ethereum needs 13 minutes for this. “Institutions pick that up. They want to act exactly like that,” argues the investment manager.
“I believe that we will therefore see significant growth”, Hougan explains. The SOL price can continue to expect massive profits, especially thanks to institutional investors.
On X, some users contradict this assessment. Ethereum leads DeFi with a TVL of 95 billion US dollars. Solana follows in second place with around 13 billion US dollars. ETH’s network effect is considered powerful. Some analysts suspect that Ethereum’s market dominance is already too enormous to ever overcome it.
- Solana
(SOL) - Price $226.79
- Market Cap
$123.92 B
