Summary Points
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Surge in Demand: Solana (SOL) has risen nearly 30% over the past month, driven by strong demand for spot ETPs and corporate purchases, suggesting it’s poised for significant growth.
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Upcoming ETP Listings: Major financial firms like Bitwise, Grayscale, and Fidelity have filed to launch spot SOL ETPs, with a decision expected by October 10, 2025, potentially leading to a wave of mainstream investments.
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Strong Institutional Support: Forward Industries, backed by $1.65 billion from prominent firms, aims to buy and stake SOL, positioning it for greater visibility and demand in the market.
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Technical Advantages: With improved transaction speeds and low fees, Solana is now among the fastest blockchains, making it an appealing choice for decentralized finance (DeFi) and tokenized assets, despite centralization concerns.
Solana (SOL) Poised for a Major Rally, Says Bitwise CIO
Solana (SOL) has gained nearly 30% in value over the past month. As of now, it aims to reach its all-time high from early 2025. Bitwise Chief Investment Officer Matt Hougan believes the cryptocurrency might be ready for a significant end-of-year rally. He argues that the right “ingredients” are aligning for Solana, similar to what propelled Bitcoin and Ethereum to impressive gains.
Hougan’s recent analysis indicates a simple formula behind these potential gains. He notes that strong demand from exchange-traded products (ETPs) and corporate treasury purchases have consistently outpaced the issuance of new SOL tokens. This imbalance creates favorable market conditions. For example, Bitcoin surged from $40,000 in early 2024 to over $115,000 today, while Ethereum tripled after institutional investors entered the fray.
Several prominent companies, including Bitwise, Grayscale, and Franklin Templeton, have filed to create spot SOL ETPs. The U.S. Securities and Exchange Commission (SEC) is set to decide on these applications by October 10, 2025. If approved, multiple SOL ETPs could launch simultaneously in Q4, potentially fueling mainstream interest in the cryptocurrency.
Additionally, Galaxy Digital and other firms have invested $1.65 billion into Forward Industries, a new publicly traded SOL treasury company. This venture aims to purchase and stake SOL to generate returns. The selection of Kyle Samani, co-founder of Multicoin Capital and a long-time supporter of Solana, as chairman could amplify investor visibility, much like Michael Saylor has done for Bitcoin.
Beyond these financial strategies, Solana itself boasts a compelling technological edge. It operates as a high-throughput, low-cost programmable blockchain, efficiently handling tokenized assets and decentralized finance (DeFi). Recent upgrades reduced transaction finality from 12 seconds to just 150 milliseconds. This makes Solana one of the fastest blockchains, with minimal transaction fees.
While some critics express concerns about centralization, Hougan points out that Solana ranks third in stablecoin liquidity and fourth in tokenized assets. The total value of tokenized assets under management surged 140% this year. With a market cap of $116 billion, Solana remains significantly smaller than Bitcoin. This smaller size means that even modest inflows can have a significant impact. For instance, Forward Industries’ planned acquisition is akin to $33 billion entering Bitcoin.
In light of these developments, Hougan remains confident that Solana’s increasing demand could overshadow its inflation rate, currently around 4.3%. He asserts that the cryptocurrency’s setup is too attractive to ignore, positioning Solana for potential breakthroughs in the coming months.
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