Solana has “two ways to win”, explosive potential: bit level

Solana offers investors “two ways to win,” giving it “explosive” growth potential as it expands into the stablecoin and tokenization markets, said Bitwise CIO Matt Hougan.

Hougan said in A job on Solana can benefit from the expected growth of the stablecoin and tokenization sectors, as well as capturing a greater market share of these sectors.

He said Solana’s advantage lies in its fast, user-friendly technology and expanding ecosystem, citing Western Union’s decision this week to launch its stablecoin, USDPT, on Solana as evidence of the growing momentum of the network’s stablecoin infrastructure.

“I think people significantly underestimate how much and how quickly these technologies are going to reshape markets,” he said. “It’s easy for me to imagine this market growing 10 times or more.”

Ethereum leads the market, but Solana is gaining ground

Ethereum currently dominates the stablecoin and tokenization infrastructure market by a comfortable margin when looking at each blockchain’s respective metrics of total value locked (TVL) and stablecoin market share.

Ethereum On-Chain Metrics (Source: ChallengeLlama)

Data from DefiLlama shows that Ethereum’s TVL currently stands at approximately $85.116 billion, while the chain also hosts $163.667 billion worth of stablecoin supply currently in circulation.

Meanwhile, Solana’s TVL stands at $11.386 billion and hosts $16.945 billion worth of stablecoins.

Hougan sees Solana as a leading challenger and liassesses its chances of “gaining a greater share” of the stablecoin and tokenization infrastructure market.

“It offers fast, user-friendly technology, backed by a great community with a fast-paced attitude,” he said. “This is a newer asset that is catching up to its peers in winning institutional mandates, but it is gaining ground.”

First SOL Spot ETF trades in the US this week

Hougan’s prediction comes after Bitwise launched the first US spot SOL ETF (exchange-traded fund) this week.

On its first day of trading, the Bitwise Solana Staking ETF (BSOL) saw $69.5 million in inflows and $56 million in trading activity. According to Bloomberg ETF analyst Eric Balchunas, this is the largest early trading activity among the 850 ETFs launched this year.

$BSOL‘s $56 million is the biggest launch this year. More than $XRPR, $SSKIves and $BMNU. And what is astonishing is that it is endowed with 220 million dollars. He could have invested from day one, which would have resulted in around $280 million, which would still be more than $ETHAthe beginnings. Good start in any case.

– Eric Balchunas (@EricBalchunas) October 28, 2025

Prior to its launch, investors had also invested $220 million in the ETF. According to Balchunas, if the fund had invested this seed capital on day one, it would have seen volumes of around $280 million. This would have represented higher trading volumes than BlackRock’s US Ethereum Spot ETF (ETHA).

Inflows for the investment product continued in the days that followed. After its first day of trading, BSOL recorded inflows of $46.5 million on October 29 and $36.5 million on October 30, according to data from Distant investors.

Spot SOL ETF flow in the United States (Source: Farside Investors)

BSOL also managed to outperform the Grayscale product Solana Trust (GSOL), which debuted a day after BSOL.

The US spot SOL ETF market could soon become more competitive as more funds enter the space.

According to Zach Pandl, director of Grayscale, spot SOL products could achieve the same success as similar investment products for Bitcoin and Ethereum. The executive estimates that Solana spot ETFs could gobble up at least 5% of the total SOL supply within a year or two.

This would equate to over $5 billion worth of SOL tokens at current prices.

The recent launch of SOL spot ETFs in the United States has not had the desired impact on Solana’s price, which has retraced amid a broader crypto market correction in recent days. Data from CoinMarketCap shows SOL slipped more than 2% in the past 24 hours to trade at $186.56 as of 7:22 a.m. EST.

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