Bitwise Chief Investment Officer Matt Hougan has expressed a bullish outlook on Solana, suggesting that its price trajectory could mirror that of Bitcoin over time. Hougan argues that both cryptocurrencies may benefit from overarching trends in the digital-value market, which are increasingly attracting investors seeking alternatives to traditional assets.
Hougan identifies two primary factors driving Bitcoin’s valuation. Firstly, the expanding store-of-value market presents opportunities as investors explore alternatives to conventional holdings. He believes that Bitcoin’s market share could increase as it matures, potentially leading to a price surge if the overall market grows. In a scenario where Bitcoin captures a 50% market share akin to gold, he estimates its price could skyrocket to approximately $6.5 million per coin.
The same rationale, according to Hougan, could apply to Solana. He views Solana as a foundational layer for stablecoins and tokenized real-world assets, sectors he believes have significant growth potential. Additionally, Hougan posits that the introduction of new US exchange-traded products could propel Solana to new heights.
On October 28, Bitwise launched its own spot SOL ETF, labeled BSOL, and Grayscale followed suit with its version, GSOL, the next day. The two ETFs garnered impressive initial investments, collectively attracting around $154 million in their first sessions, managing approximately $439 million in SOL exposure—roughly 0.4% of the token’s circulating supply.
The investment landscape looks promising, with data from DeFiLlama revealing that the Solana network processes about 55–60 million transactions daily, underscoring robust user engagement. Active addresses number around 2.0–2.9 million, indicating consistent user interactions rather than sporadic bursts of activity. The decentralized exchange volume reached about $3.9 billion daily, with a weekly total of approximately $28–31 billion, suggesting strong liquidity within Solana’s trading ecosystem.
Current metrics show SOL’s open interest in derivatives at nearly $9.37 billion. Spot trading over the past day hit approximately $690.65 million, while futures volume was around $11.05 billion. SOL is currently hovering around crucial support levels, with stable buying patterns indicated in price movements.
Analysts have noted that there has been repeated buyer intervention in the range of $260–$270, suggesting a protective stance against potential downturns. The price action has stabilized, trading above short-term trend levels, including an upward sloping 20-day moving average.
Recent market candles show an upward trend, with higher lows indicating renewed buyer interest after recent pullbacks. However, SOL faces a key resistance point near $295, which has rejected previous attempts to move above this threshold. Should SOL break and close above $295, analysts believe it could lead to further upward momentum towards $400, near previously stalled supply levels around $390–$410 earlier this year.
The Relative Strength Index (RSI) is climbing from mid-range, leaving room for price appreciation before reaching potentially overheated conditions. In the event of a downturn, support is expected around the $250–$255 range, providing a safety net for investors as market structure trends higher.
