Bitwise Chief Investment Officer Matt Hougan is now applying his long-standing Bitcoin framework to Solana \u2014 and he\u2019s calling the setup \u201cexplosive.\u201d<\/p>\n
In an October 29 memo<\/a>, Hougan says the best trades in crypto are the ones where you get \u201ctwo ways to win\u201d with one position. For Bitcoin, he defines those two bets as: \u201c1) The global \u2018store of value\u2019 market will grow. 2) Bitcoin will take an increasing share of that market.\u201d He says only one of those outcomes has to be true for Bitcoin to work.<\/p>\n Hougan sizes that \u201cstore of value\u201d market at roughly $27.5 trillion today, including about $25 trillion in gold and $2.5 trillion in Bitcoin. He argues investors focus too much on Bitcoin replacing gold and not enough on the overall market itself expanding.<\/p>\n He notes that this market has already grown by roughly 10x in the last 20 years, from under $3 trillion in 2005 to $27.5 trillion today. In his view, if that repeats, Bitcoin can 10x without needing to fully displace gold<\/a>. If, on top of that, Bitcoin also closes the gap with gold and ends up with half of the total store-of-value market, \u201cevery bitcoin would be worth $6.5 million.\u201d He adds, \u201cI\u2019m not saying that will happen,\u201d but he uses the math to show how powerful the dual-bet structure can be.<\/p>\n Hougan now argues Solana fits the same model. \u201cWhen I invest in Solana, I am also making two bets at once,\u201d he writes. Those two bets are: \u201c1) The stablecoin and tokenization infrastructure market will grow. 2) Solana will win an increasing share of that market.\u201d<\/p>\n He defines that market as the set of blockchains that power stablecoin payments and asset tokenization today. He names Ethereum as \u201cthe market leader,\u201d and lists Tron<\/a>, Solana, and Binance Smart Chain as major challengers in stablecoins. Together, he says, those networks represent $768 billion in market value. Solana\u2019s share of that is $107 billion, or roughly 14%.<\/p>\n For Hougan, that is the opening. He says he has \u201ca lot of confidence that the stablecoin and tokenization infrastructure market will grow,\u201d and argues most people \u201csignificantly underestimate how much these technologies will remake markets.\u201d<\/p>\n His long-run claim is blunt: \u201cOver time, I suspect nearly all payments will be in stablecoins and nearly all assets will be tokenized.\u201d If that plays out, \u201cthe blockchains that facilitate this growth will be extremely valuable.\u201d He calls it \u201ceasy to imagine this market growing by 10x or more.\u201d<\/p>\n The second part, in his view, is Solana\u2019s ability to capture more of that expansion. He calls Solana \u201cfast\u201d and \u201cuser-friendly,\u201d backed by a community with a \u201cship-fast attitude.\u201d He also notes that Solana is still \u201cplaying catch-up\u201d in winning institutional mandates, but says that is starting to change. As an example, he cites Western Union\u2019s announced stablecoin effort<\/a> this week, and points out that Western Union chose Solana as the underlying blockchain.<\/p>\n Hougan\u2019s argument is that if the overall market for stablecoin settlement and tokenized assets 10xes, and Solana grows its share of that market from 14%, the result is not linear \u2014 it compounds. \u201cIf I\u2019m right,\u201d he writes, \u201cthe combination of a growing market and a growing share of that market will be explosive for Solana. Just as with bitcoin.\u201d<\/p>\n He closes with a note on positioning. Crypto, he says, rewards humility because \u201ceven the most seasoned experts don\u2019t know exactly how things will play out.\u201d But he says you can still tilt odds in your favor by owning assets that embed two high-conviction bets at once. In his view, Bitcoin already fits that profile. Solana now does too.<\/p>\n At press time, SOL traded at $186.<\/p>","protected":false},"excerpt":{"rendered":" Bitwise Chief Investment Officer Matt Hougan is now applying his long-standing Bitcoin framework to Solana \u2014 and he\u2019s calling the setup \u201cexplosive.\u201d In an October 29 memo, Hougan says the best trades in crypto are the ones where you get \u201ctwo ways to win\u201d with one position. For Bitcoin, he defines those two bets as: […]<\/p>\n","protected":false},"author":0,"featured_media":109433,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[],"class_list":["post-109432","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-discovery"],"_links":{"self":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/109432"}],"collection":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=109432"}],"version-history":[{"count":0,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/posts\/109432\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=\/wp\/v2\/media\/109433"}],"wp:attachment":[{"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=109432"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=109432"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/mycryptomania.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=109432"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}Solana\u2019s Dual Growth Could Mirror Bitcoin<\/h2>\n