Why Solana is Poised for Significant Growth by Year-End
The cryptocurrency market is ever-evolving, with new opportunities constantly emerging. Among the most promising players right now is Solana. According to Matt Hougan, Chief Investment Officer (CIO) at Bitwise, Solana could be on track for a powerful close to the year, driven by growing institutional interest and a favorable market setup.
The Key Factors Behind Solana’s Momentum
Hougan highlights two main contributors to major cryptocurrency gains over the past years: strong inflows from exchange-traded products (ETPs) and corporate treasury purchases. Drawing parallels with Bitcoin and Ethereum, he explains how these factors are now building momentum for Solana.
To provide perspective, Bitcoin saw tremendous growth from $40,000 in early 2024 to a staggering $112,000. Similarly, Ethereum tripled in value, reaching $4,500. Solana could be positioned to follow this trend, thanks to a surge in institutional demand and new developments in its ecosystem.
Solana Leads the Race for Crypto ETFs
Currently, Solana is at the forefront of the SEC’s cryptocurrency ETF race, with 16 filings out of 96 awaiting approval. Notably, several major asset managers like Bitwise, Grayscale, VanEck, Fidelity, and Invesco/Galaxy have filed applications to launch Solana-focused ETPs. The SEC’s upcoming decision, expected by October 10, 2025, could unlock new investment opportunities in the fourth quarter, amplifying demand for SOL tokens.
In addition, major investment firms such as Galaxy Digital, Jump Crypto, and Multicoin Capital have committed $1.65 billion to a publicly traded Solana treasury company, Forward Industries. This new entity aims to buy, stake, and generate returns on SOL tokens, further solidifying the token’s position in the market.
Institutional Support and Solana’s Unique Edge
Institutional interest in Solana is rapidly increasing. For instance, SOL Strategies, a Solana-focused investment company, recently debuted on Nasdaq under the ticker STKE, with an impressive $94 million in Solana holdings. Publicly traded entities now hold approximately 4.44 million SOL tokens, valued at nearly $1 billion.
But what makes Solana exceptional? Known for its high-speed transactions and low fees, Solana stands out as a more scalable alternative to Ethereum. Its recent blockchain upgrade has reduced transaction times to an impressive 150 milliseconds, making it ideal for stablecoins, tokenized assets, and decentralized finance (DeFi) applications.
While its prioritization of speed over decentralization has drawn some criticism, proponents argue that Solana’s performance and scalability make it capable of supporting asset tokenization on a global scale.
Why Even Small Inflows Could Have a Big Impact
Another interesting aspect of Solana is its relatively smaller market size compared to Bitcoin and Ethereum. This means that even modest inflows can have an outsized impact on its price. For instance, Forward Industries’ planned $1.65 billion investment in Solana would be equivalent to a $33 billion purchase of Bitcoin in terms of market impact.
As 2025 draws to a close, Hougan sees Solana as an attractive choice for both institutional and retail investors, despite current inflationary pressures. Its compelling setup makes it a cryptocurrency worth noting for potential growth in the crypto market.
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