Hougan cited demand from pending spot ETFs and digital asset treasuries as potential catalysts.
Solana is getting hot again — and may be primed for an “epic end-of-year run,” according to Bitwise Chief Investment Officer Matt Hougan.
The sixth-largest crypto asset by market cap is up more than 4% in the last 24 hours to $223, and earlier Wednesday hit $224.95 — a mark it hasn’t held since February 1. Solana has risen 25% over the last 30 days, making it the largest gainer among the top 10 assets by market cap.
“For the last 18 months, the recipe for strong returns in crypto has been clear: Take one part exchange traded products (ETP) inflows, add strong corporate treasury purchases, and voilà — you get big returns,” Hougan wrote in his weekly memo. “Solana has the conditions to follow this path.”
“All the ingredients are there for an epic end-of-year run for Solana,” he added.
At least one part of that equation is already underway for Solana.
Digital asset treasuries centered on Solana have been snatching up SOL all year, with publicly traded firms like Upexi and DeFi Development Corp. having accumulated more than $400 million worth of the asset apiece since the year began.
An even bigger treasury may be established soon. On Monday, Forward Industries announced a $1.65 billion private investment in public equity (PIPE) raise, with the proceeds planned to build its Solana treasury, enabling it to create the largest publicly traded SOL treasury on the books if it uses just more than 25% of the proceeds. The firm will be led by early Solana investor and Multicoin Capital co-founder, Kyle Samani.
Solana ETFs might be just around the corner, too.
Approval decisions are looming from the SEC regarding previously filed spot ETFs from multiple issuers, including Bitwise, Canary Funds, and 21Shares. While approvals are not guaranteed, analysts previously told Decrypt that Solana, XRP, and Dogecoin ETF approvals are “near locks” in 2025.
While Hougan said that an approved spot ETF and treasury firm accumulation is not a guarantee of success for SOL, the relative size of the asset when compared to Bitcoin and Ethereum means that inflows will have a bigger impact on the price.
“Scaled for the size of the blockchain, a relatively small amount of flows into Solana could significantly impact prices,” he said. “For instance, Forward Industries’ $1.6 billion purchase of Solana shares would be the equivalent of $33 billion in Bitcoin purchases.”
