Why Bitwise’s Matt Hougan Sees Solana as a Winning Bet in the Blockchain World
Key Takeaways
- Bitwise CIO Matt Hougan highlights Solana’s potential in the growing stablecoin and tokenization markets, offering investors “two ways to win” through market expansion and increased share.
- Solana is positioning itself as a strong challenger to Ethereum, with advantages in speed and cost that could attract more institutional interest.
- Despite Ethereum’s current dominance in stablecoin market cap and total value locked, Solana is gaining ground with partnerships like Western Union’s adoption.
- Hougan compares Solana’s strategy to Bitcoin’s, betting on both overall market growth and capturing a larger slice of it.
- Institutional adoption is accelerating for Solana, as seen in recent product launches like Bitwise’s staking ETF, signaling broader blockchain innovation.
Imagine you’re at a crossroads in the fast-paced world of blockchain technology, where every decision could lead to massive gains or missed opportunities. That’s the thrilling spot where Bitwise’s chief investment officer, Matt Hougan, finds himself when talking about Solana. In a recent social media post, Hougan shared his enthusiasm, explaining why he’s so optimistic about this layer-1 blockchain. It’s not just hype; it’s about smart bets in a market that’s evolving quicker than most people realize. Let’s dive into what makes Solana stand out, why it’s challenging giants like Ethereum, and how this could reshape the future of digital assets. Along the way, we’ll explore how platforms like WEEX, known for their seamless integration of innovative blockchains, are aligning perfectly with this growth, enhancing user experiences in trading and beyond.
Understanding Solana’s Edge in the Blockchain Race
Think of the blockchain world like a bustling highway system, where Ethereum has long been the main interstate—reliable but often congested and expensive to travel. Solana, on the other hand, is like a high-speed bullet train, zipping past traffic with efficiency and lower costs. Hougan captured this essence perfectly when he described his affection for investments that offer dual paths to success. For Solana, that means wagering on the explosive growth of stablecoins and tokenization infrastructure, while also positioning itself to grab a bigger piece of that expanding pie.
Hougan’s post emphasized that these technologies aren’t just buzzwords; they’re set to transform markets in ways we can barely imagine. Picture stablecoins as digital dollars that move instantly across borders without the headaches of traditional banking. Tokenization? That’s turning real-world assets like real estate or art into digital tokens that anyone can trade easily. Hougan believes this market could balloon by ten times or more, and Solana’s design makes it a prime contender to dominate. It’s like betting on the rise of e-commerce back in the early 2000s—those who saw Amazon’s potential early reaped the rewards.
This optimism isn’t coming out of thin air. Earlier this month, Hougan predicted Solana could become the go-to network for stablecoins on Wall Street. Even Bitwise’s CEO, Hunter Horsley, has been vocal about Solana’s advantages in the staking ETF space, pointing out how its architecture appeals more to investors seeking efficiency. These aren’t isolated opinions; they’re backed by real momentum. For instance, financial giant Western Union recently integrated Solana for its stablecoin settlement, a move that underscores growing institutional trust. It’s like watching a underdog sports team suddenly sign star players—sudden, but game-changing.
To put this in perspective, compare Solana to its rivals. While Ethereum boasts a massive lead, Solana’s speed—processing thousands of transactions per second versus Ethereum’s slower pace—gives it a real edge in high-demand areas like decentralized finance (DeFi). It’s akin to choosing a smartphone with a faster processor; sure, the established brand might have more apps, but the new one runs everything smoother and cheaper. Hougan’s “two ways to win” philosophy applies here: even if the overall market grows modestly, Solana’s market share gains could still deliver outsized returns.
Solana vs. Ethereum: A Tale of Two Blockchain Titans
No conversation about Solana would be complete without stacking it up against Ethereum, the undisputed king of the blockchain realm. Ethereum currently commands a staggering stablecoin market capitalization exceeding $163 billion, with a total value locked surpassing $85 billion, according to data from aggregators like DefiLlama. That’s like comparing a global empire to a rising city-state—impressive, but not invincible.
Solana, by contrast, sits at a stablecoin market cap of over $14.9 billion and a total value locked of more than $11.3 billion. These figures might seem dwarfed, but they’re growing rapidly, fueled by Solana’s ability to handle high volumes without Ethereum’s notorious gas fees. Hougan identifies Tron, Solana, and BNB Smart Chain as the primary challengers vying for Ethereum’s throne. It’s a classic David versus Goliath story, where agility and innovation could topple sheer size.
What sets Solana apart? Its proof-of-history consensus mechanism acts like a built-in timestamp, making transactions lightning-fast and scalable. Imagine trying to coordinate a massive group chat—Ethereum might lag with everyone talking over each other, but Solana keeps things organized and zippy. This efficiency is drawing eyes from institutions, as Hougan noted. Deals like Western Union’s adoption on Tuesday highlight how Solana is “playing catch-up” but gaining fast. It’s not just about speed; it’s about creating a ecosystem where stablecoins and tokenized assets can thrive without friction.
Hougan draws parallels to Bitcoin, another asset with “two ways to win.” Bitcoin bets on the global store-of-value market expanding while capturing more of it. You don’t need both to pan out perfectly; one strong path can lead to success. For Solana, if stablecoins and tokenization explode as predicted, its market share could skyrocket. And with products like Bitwise’s staking ETF launching on Tuesday, the infrastructure is falling into place. This ETF allows investors to stake SOL tokens easily, much like how traditional funds democratized stock investing.
Institutional Interest and Solana’s Rising Star
The real excitement brews in institutional circles, where Solana is shedding its “new kid on the block” image. Hougan points out that while it’s newer than peers like Ethereum, Solana is rapidly securing mandates from big players. Western Union’s move is a prime example—integrating Solana for stablecoin settlements streamlines global payments, reducing costs and time. It’s like upgrading from snail mail to instant messaging for international finance.
This institutional embrace aligns beautifully with platforms that prioritize innovation and user-centric design. Take WEEX, for instance, a forward-thinking exchange that’s built its reputation on supporting high-potential blockchains like Solana. By offering seamless trading pairs, low fees, and robust security, WEEX enhances the accessibility of Solana-based assets, making it easier for everyday investors to join the ride. This kind of brand alignment—where exchanges like WEEX champion scalable networks—strengthens the entire ecosystem, fostering trust and growth. It’s not just about trading; it’s about creating a bridge between traditional finance and the blockchain future, where Solana’s strengths shine.
Hougan’s bullishness extends to Solana’s potential in tokenized real-world assets. Imagine owning a fraction of a Picasso painting or a New York apartment building through tokens on Solana—secure, liquid, and global. As regulations evolve, this could unlock trillions in value. Hougan’s bet is that Solana will capture a growing share, driven by its tech advantages. Evidence supports this: Solana’s DeFi ecosystem has seen explosive growth, with protocols like Jupiter and Raydium attracting billions in liquidity. It’s like watching a startup disrupt an industry giant—risky, but rewarding for those who get in early.
Exploring Broader Implications: Market Growth and Challenges
Diving deeper, let’s consider the bigger picture. Hougan believes the stablecoin and tokenization markets are underrated in their potential. “People dramatically underestimate how much and how quickly these technologies will remake markets,” he said. If they grow by 10x, as he envisions, Solana’s positioning could lead to exponential returns. Think of it as the internet boom of the 90s; early adopters of platforms like Google reaped fortunes because they bet on both the tech’s growth and its market dominance.
But challenges remain. Solana has faced network outages in the past, raising questions about reliability compared to Ethereum’s battle-tested infrastructure. Yet, recent upgrades have bolstered its resilience, much like how early Tesla models improved over time to become industry leaders. Hougan’s optimism hinges on Solana overcoming these hurdles, much as Bitcoin did with scalability debates.
On the flip side, competitors like Tron and BNB Smart Chain aren’t sitting idle. Tron’s low fees have made it a stablecoin haven, while BNB’s integration with Binance offers massive user bases. Solana counters with its developer-friendly environment, attracting projects that prioritize speed. It’s a competitive arena, but Hougan sees Solana’s “two ways to win” as a strategic advantage.
Tying It All Together: Solana’s Path Forward
As we wrap this up, it’s clear why Hougan is so enthusiastic. Solana isn’t just another blockchain; it’s a calculated bet on a transforming market. With institutional interest heating up—evidenced by partnerships and product launches—it’s poised for growth. For investors, this means opportunities that blend innovation with real-world utility.
Platforms like WEEX play a crucial role here, aligning their brand with cutting-edge tech like Solana to offer users secure, efficient trading. This synergy not only boosts credibility but also empowers more people to participate in the blockchain revolution. Whether you’re a seasoned trader or a curious newcomer, Solana’s story is one of potential and possibility, much like the early days of the internet.
Reflecting on frequently searched questions on Google, topics like “Is Solana better than Ethereum?” and “How to invest in Solana stablecoins?” dominate, showing widespread curiosity about its advantages and entry points. On Twitter, discussions as of October 31, 2025, buzz around Solana’s recent network upgrades, with posts from influencers like @SolanaStatus announcing improved uptime and developer grants, sparking debates on its ETF potential. Official announcements from Solana’s team highlight partnerships with fintech firms, further fueling optimism. These updates, combined with Hougan’s insights, paint a vibrant picture of a blockchain on the rise.
In the end, Hougan’s view reminds us that in the world of blockchain, the smartest bets aren’t just on winners, but on those with multiple paths to victory. Solana embodies that, offering a compelling narrative for anyone eyeing the future of finance.
FAQ
Why is Matt Hougan bullish on Solana?
Matt Hougan sees Solana as a strong bet due to its potential in the expanding stablecoin and tokenization markets, offering investors two paths to success: overall market growth and gaining a larger share.
How does Solana compare to Ethereum in terms of market metrics?
Ethereum leads with over $163 billion in stablecoin market cap and $85 billion in total value locked, while Solana has over $14.9 billion in stablecoins and $11.3 billion locked, but it’s growing quickly due to speed advantages.
What recent developments show Solana’s institutional interest?
Deals like Western Union’s adoption of Solana for stablecoin settlements and Bitwise’s staking ETF launch demonstrate rising trust from institutions, highlighting its efficiency for real-world applications.
Can Solana overtake Ethereum in certain markets?
Hougan believes Solana could challenge Ethereum in stablecoins and staking ETFs, thanks to its favorable design for investors, though Ethereum remains dominant overall.
How can investors get involved with Solana through platforms like WEEX?
Investors can trade Solana-based assets on exchanges like WEEX, which offer low fees and secure access, aligning with Solana’s growth for seamless participation in its ecosystem.
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Editor's Note: Citrini7's cyberpunk-themed AI doomsday prophecy has sparked widespread discussion across the internet. However, this article presents a more pragmatic counter perspective. If Citrini envisions a digital tsunami instantly engulfing civilization, this author sees the resilient resistance of the human bureaucratic system, the profoundly flawed existing software ecosystem, and the long-overlooked cornerstone of heavy industry. This is a frontal clash between Silicon Valley fantasy and the iron law of reality, reminding us that the singularity may come, but it will never happen overnight.
The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
A few months ago, I just bought a house. The transaction process mandated that we hire a real estate agent, with lofty justifications. My buyer's agent made about $50,000 in this transaction, while his actual work — filling out forms and coordinating between multiple parties — amounted to no more than 10 hours, something I could have easily handled myself. The market will eventually move towards efficiency, providing fair pricing for labor, but this will be a long process.
I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
Of course, labor reallocation is inevitable, such as in the driving sector. As Citrini pointed out, many white-collar jobs will experience disruptions. For positions like real estate brokers that have long lost tangible value and rely solely on momentum for income, AI may be the final straw.
But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
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The following is the original content:
Renowned market commentator Citrini7 recently published a captivating and widely circulated AI doomsday novel. While he acknowledges that the probability of some scenes occurring is extremely low, as someone who has witnessed multiple economic collapse prophecies, I want to challenge his views and present a more deterministic and optimistic future.
In 2007, people thought that against the backdrop of "peak oil," the United States' geopolitical status had come to an end; in 2008, they believed the dollar system was on the brink of collapse; in 2014, everyone thought AMD and NVIDIA were done for. Then ChatGPT emerged, and people thought Google was toast... Yet every time, existing institutions with deep-rooted inertia have proven to be far more resilient than onlookers imagined.
When Citrini talks about the fear of institutional turnover and rapid workforce displacement, he writes, "Even in fields we think rely on interpersonal relationships, cracks are showing. Take the real estate industry, where buyers have tolerated 5%-6% commissions for decades due to the information asymmetry between brokers and consumers..."
Seeing this, I couldn't help but chuckle. People have been proclaiming the "death of real estate agents" for 20 years now! This hardly requires any superintelligence; with Zillow, Redfin, or Opendoor, it's enough. But this example precisely proves the opposite of Citrini's view: although this workforce has long been deemed obsolete in the eyes of most, due to market inertia and regulatory capture, real estate agents' vitality is more tenacious than anyone's expectations a decade ago.
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I deeply understand the ways of inertia and change management: I once founded and sold a company whose core business was driving insurance brokerages from "manual service" to "software-driven." The iron rule I learned is: human societies in the real world are extremely complex, and things always take longer than you imagine — even when you account for this rule. This doesn't mean that the world won't undergo drastic changes, but rather that change will be more gradual, allowing us time to respond and adapt.
Recently, the software sector has seen a downturn as investors worry about the lack of moats in the backend systems of companies like Monday, Salesforce, Asana, making them easily replicable. Citrini and others believe that AI programming heralds the end of SaaS companies: one, products become homogenized, with zero profits, and two, jobs disappear.
But everyone overlooks one thing: the current state of these software products is simply terrible.
I'm qualified to say this because I've spent hundreds of thousands of dollars on Salesforce and Monday. Indeed, AI can enable competitors to replicate these products, but more importantly, AI can enable competitors to build better products. Stock price declines are not surprising: an industry relying on long-term lock-ins, lacking competitiveness, and filled with low-quality legacy incumbents is finally facing competition again.
From a broader perspective, almost all existing software is garbage, which is an undeniable fact. Every tool I've paid for is riddled with bugs; some software is so bad that I can't even pay for it (I've been unable to use Citibank's online transfer for the past three years); most web apps can't even get mobile and desktop responsiveness right; not a single product can fully deliver what you want. Silicon Valley darlings like Stripe and Linear only garner massive followings because they are not as disgustingly unusable as their competitors. If you ask a seasoned engineer, "Show me a truly perfect piece of software," all you'll get is prolonged silence and blank stares.
Here lies a profound truth: even as we approach a "software singularity," the human demand for software labor is nearly infinite. It's well known that the final few percentage points of perfection often require the most work. By this standard, almost every software product has at least a 100x improvement in complexity and features before reaching demand saturation.
I believe that most commentators who claim that the software industry is on the brink of extinction lack an intuitive understanding of software development. The software industry has been around for 50 years, and despite tremendous progress, it is always in a state of "not enough." As a programmer in 2020, my productivity matches that of hundreds of people in 1970, which is incredibly impressive leverage. However, there is still significant room for improvement. People underestimate the "Jevons Paradox": Efficiency improvements often lead to explosive growth in overall demand.
This does not mean that software engineering is an invincible job, but the industry's ability to absorb labor and its inertia far exceed imagination. The saturation process will be very slow, giving us enough time to adapt.
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But our lifesaver lies in the fact that the United States has almost infinite potential and demand for reindustrialization. You may have heard of "reshoring," but it goes far beyond that. We have essentially lost the ability to manufacture the core building blocks of modern life: batteries, motors, small-scale semiconductors—the entire electricity supply chain is almost entirely dependent on overseas sources. What if there is a military conflict? What's even worse, did you know that China produces 90% of the world's synthetic ammonia? Once the supply is cut off, we can't even produce fertilizer and will face famine.
As long as you look to the physical world, you will find endless job opportunities that will benefit the country, create employment, and build essential infrastructure, all of which can receive bipartisan political support.
We have seen the economic and political winds shifting in this direction—discussions on reshoring, deep tech, and "American vitality." My prediction is that when AI impacts the white-collar sector, the path of least political resistance will be to fund large-scale reindustrialization, absorbing labor through a "giant employment project." Fortunately, the physical world does not have a "singularity"; it is constrained by friction.
We will rebuild bridges and roads. People will find that seeing tangible labor results is more fulfilling than spinning in the digital abstract world. The Salesforce senior product manager who lost a $180,000 salary may find a new job at the "California Seawater Desalination Plant" to end the 25-year drought. These facilities not only need to be built but also pursued with excellence and require long-term maintenance. As long as we are willing, the "Jevons Paradox" also applies to the physical world.
The goal of large-scale industrial engineering is abundance. The United States will once again achieve self-sufficiency, enabling large-scale, low-cost production. Moving beyond material scarcity is crucial: in the long run, if we do indeed lose a significant portion of white-collar jobs to AI, we must be able to maintain a high quality of life for the public. And as AI drives profit margins to zero, consumer goods will become extremely affordable, automatically fulfilling this objective.
My view is that different sectors of the economy will "take off" at different speeds, and the transformation in almost all areas will be slower than Citrini anticipates. To be clear, I am extremely bullish on AI and foresee a day when my own labor will be obsolete. But this will take time, and time gives us the opportunity to devise sound strategies.
At this point, preventing the kind of market collapse Citrini imagines is actually not difficult. The U.S. government's performance during the pandemic has demonstrated its proactive and decisive crisis response. If necessary, massive stimulus policies will quickly intervene. Although I am somewhat displeased by its inefficiency, that is not the focus. The focus is on safeguarding material prosperity in people's lives—a universal well-being that gives legitimacy to a nation and upholds the social contract, rather than stubbornly adhering to past accounting metrics or economic dogma.
If we can maintain sharpness and responsiveness in this slow but sure technological transformation, we will eventually emerge unscathed.
Source: Original Post Link