In a recent market note, Hougan described Solana as sitting at the crossroads of stablecoin expansion and real-world asset tokenization, two industries he expects to multiply in size over the coming years.
Two Engines, One Narrative
Hougan’s argument hinges on what he calls the “dual-bet effect.” He first applied the idea to Bitcoin, explaining that the world’s largest cryptocurrency benefits both from the overall rise of the store-of-value market – roughly $27.5 trillion across gold and Bitcoin combined – and from its potential to command a greater share of that pie.
In his analysis, even if Bitcoin’s market share stays flat, an expanding store-of-value sector could double the coin’s valuation. And if Bitcoin instead captures more of the existing market while total value remains unchanged, the outcome would be equally bullish.
Extending that same logic to Solana, Hougan believes the blockchain’s upside lies in the simultaneous growth of its surrounding ecosystem and its capacity to outpace rivals like Ethereum, BNB Chain, and Tron.
Solana’s “Catch-Up” Advantage
While Ethereum remains dominant in stablecoin issuance and tokenized fund infrastructure, Solana’s relatively smaller scale may actually work in its favor. With a market capitalization near $107 billion, representing about 14% of the leading Layer-1 sector, Hougan sees Solana as a nimble competitor capable of gaining ground quickly.
He described the network’s design – fast transaction speeds, a vibrant developer community, and growing institutional adoption – as ingredients that could turn it into the breakout platform for mainstream blockchain finance.
Stablecoins and Tokenization Take Center Stage
According to Hougan, investors still underestimate how transformative stablecoins and tokenized assets could become. He envisions a financial landscape where most payments occur in stablecoins and nearly all traditional assets are represented digitally. The infrastructure that supports that transition, he said, will generate enormous value, potentially expanding tenfold from its current base.
Recent corporate interest lends weight to his prediction. Western Union, for instance, has already confirmed plans to issue a stablecoin directly on Solana by early 2026, signaling growing trust among established financial institutions.
ETF Momentum Confirms Institutional Interest
Bitwise itself is benefiting from this momentum. Its BSOL exchange-traded fund, launched earlier this week as the first U.S. spot Solana ETF, attracted $116 million in net inflows within two days. Trading volumes hit $57.9 million on the debut – the largest of any ETF rollout this year – before climbing to $75 million on day two, a performance Bloomberg’s Eric Balchunas called “remarkable.”
A Bitcoin-Style Setup
In Hougan’s view, Solana mirrors Bitcoin’s early positioning: exposure to a rapidly growing sector plus the potential to seize greater market dominance. “When both the market and share expand together, the result can be exponential,” he told clients.
If his thesis holds true, Solana’s path forward could resemble Bitcoin’s own ascent – driven not by hype, but by the compounding effect of two markets growing in tandem.