Solana has all the elements in place for a breakout market by the end of the year.
Written by: Matt Hougan, Chief Investment Officer of Bitwise
Translated by: Luffy, Foresight News
Over the past 18 months, the "formula" for achieving high returns in cryptocurrency has been quite clear: add "inflows into exchange-traded products (ETPs)" as an ingredient, combined with "large-scale corporate treasury accumulation," and you can reap substantial rewards.
Bitcoin has followed this formula, rising from $40,000 in January 2024 to $112,000 today; Ethereum adopted the same strategy in April 2025, subsequently tripling in price to $4,500.
The effectiveness of this "formula" is not surprising; it is essentially a classic supply and demand principle at work:
Since January 11, 2024, the Bitcoin network has produced 322,681 bitcoins, while ETP and corporate purchases have exceeded 1.1 million bitcoins;
Since April 15, 2025, the Ethereum network has produced 388,568 ETH, but ETP and corporate accumulation has reached 7.4 million ETH.
When demand exceeds supply, prices naturally rise.
Why do I believe Solana will be the next breakout?
Solana has the conditions to replicate the above path.
Several issuers, including Bitwise, Grayscale, VanEck, Franklin Templeton, Fidelity, Invesco, and Canary Capital, have submitted applications to launch a spot Solana ETP. The U.S. Securities and Exchange Commission (SEC) is expected to make a decision on these applications by October 10, 2025, which means multiple institutions may simultaneously advance the issuance of spot Solana ETPs in the fourth quarter of 2025.
Meanwhile, just this past weekend, three leading institutions—Galaxy Digital, Jump Crypto, and Multicoin Capital—committed to injecting $1.65 billion in cash and stablecoins into a publicly traded large Solana treasury company, Forward Industries. After the transaction is completed, this new company will begin purchasing SOL tokens, staking them, and aiming for excess returns.
Notably, Forward Industries has appointed Multicoin Capital co-founder Kyle Samani as chairman. Multicoin is one of the earliest investors in Solana, and Samani is one of the most persuasive and steadfast advocates for Solana. Previously, Michael Saylor played a key role in promoting Bitcoin as the Executive Chairman of the Bitcoin treasury company Strategy; Tom Lee did the same for Ethereum as the Chairman of the Ethereum treasury company BitMine. If Samani can convey Solana's value proposition on platforms like CNBC, Bloomberg, and Fox Business, it will help drive the flywheel effect of investor demand.
What is the core appeal of Solana?
Of course, merely having ETP approval and the establishment of treasury companies is not enough to guarantee that investors will buy in. These investment tools must have a 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, when interest in stablecoins surged, that Ethereum, as the "largest stablecoin blockchain," truly ignited the market.
So, what is Solana's core appeal?
Solana is a competitor to Ethereum, essentially a programmable blockchain that can support various scenarios such as stablecoins, tokenized assets, and DeFi applications. Its biggest selling point is that it can process a higher volume of transactions per second (TPS) compared to Ethereum, with very low transaction costs and rapid finality (the speed at which a transaction confirmation cannot be altered). In fact, this blockchain has recently undergone a significant technical upgrade: the transaction finality time will be reduced from about 12 seconds to 150 milliseconds, fast enough to be done in the "blink of an eye." After the upgrade, Solana will rank among the fastest blockchains in the world.
Solana achieves this performance due to its fundamentally different technical architecture compared to Ethereum: it does not rely on Layer 2, making it simpler for ordinary users to use.
However, critics argue that Solana's high performance comes at a key trade-off: it is less decentralized and has a more fragile network stability (more prone to interruptions and other issues).
Even so, Solana has successfully attracted a large number of users: among programmable blockchains, it ranks third in stablecoin liquidity (behind only Ethereum and Tron); it ranks fourth in the scale of tokenized assets, with rapid growth, having increased its tokenized asset management scale by 140% this year. Supporters of Solana believe it is currently the only blockchain fast enough to support the tokenization of mainstream assets globally.
Key differences between Solana, Bitcoin, and Ethereum
There is a notable significant difference between Bitcoin, Ethereum, and Solana: Solana's scale is relatively small.
As of September 7, 2025, the market capitalizations of the three are: Bitcoin at $2.22 trillion, Ethereum at $519 billion, and Solana at $116 billion. In other words, Solana's scale is only 1/20th of Bitcoin and less than 1/4th of Ethereum.
From the perspective of blockchain scale, even a relatively small amount of funds flowing into Solana could have a significant impact on its price. For example, the $1.6 billion in SOL that Forward Industries plans to purchase, if scaled proportionally to Bitcoin, would be equivalent to a $33 billion Bitcoin purchase. However, this advantage will be partially offset by Solana's higher annual inflation rate (approximately 4.3%), while Bitcoin and Ethereum have annual inflation rates of only 0.8% and 0.5%, respectively.
Even so, Solana remains quite attractive. My advice is to closely monitor Solana's developments in the coming months.
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