Hello friends,
As you all know, I keep bringing you the latest news from the crypto and blockchain world. Today while doing some research, I came across a very exciting update that I think many of you will love .
As we step into the final quarter of the year, Solana is starting to grab attention again. A mix of new exchange-traded product (ETP) filings, stronger institutional support, and a major technical upgrade have all put the blockchain back in the spotlight. With a relatively smaller market size compared to Bitcoin and Ethereum, even moderate inflows could shake things up — though risks and timing will ultimately decide how far any rally can go.
Why Solana Could Be Ready for a Rally
Bitwise’s chief investment officer, Matt Hougan, recently pointed out that Solana might be lining up the same ingredients that helped Bitcoin and Ethereum see huge gains in the past. His logic is simple: demand keeps outpacing supply.
For example, since the start of 2024, Bitcoin’s network produced about 323,000 BTC. But over the same period, ETPs and corporate buyers picked up more than 1.1 million BTC. Ethereum saw a similar pattern, and Hougan argues Solana could follow the same trend.
Crypto adoption often gets a push when strong voices rally behind a project. Michael Saylor helped spotlight Bitcoin through his company’s purchases, while Tom Lee influenced Ethereum interest. For Solana, Hougan believes Kyle Samani — recently named chairman of Solana-focused treasury firm Forward Industries — could play that role.
That said, the existence of an ETP or a treasury vehicle doesn’t guarantee success. Ethereum had its ETFs approved in mid-2024, but it took almost a year, plus renewed interest in stablecoins, before the market really reacted.
What Makes Solana Different
Solana’s pitch has always been about speed, low fees, and scalability. It can already process far more transactions per second than Ethereum at a fraction of the cost. And the upcoming Alpenglow upgrade promises to make it even faster, cutting transaction finality from around 12 seconds to just 150 milliseconds. That would make Solana one of the quickest blockchains around.
Of course, critics argue this speed comes at a cost. Solana’s architecture is more centralized than some of its competitors, making it potentially less resilient. Still, it has attracted plenty of users, ranking third in stablecoin liquidity among programmable blockchains (behind Ethereum and TRON) and fourth in tokenized assets.
The Market Cap Factor
One of Solana’s biggest differences is its size. Bitcoin’s market cap is over $2.2 trillion, Ethereum sits at around $519 billion, while Solana is valued near $116 billion. That smaller base means price moves can happen more sharply.
Hougan compared it this way: Forward Industries’ $1.6 billion Solana purchase is equivalent, in relative terms, to someone putting $33 billion into Bitcoin. On the flip side, Solana’s annual inflation rate (around 4.3%) is higher than both Bitcoin (0.8%) and Ethereum (0.5%), which partly offsets that advantage.
Right now, Solana is still in the shadow of the bigger names like Bitcoin and Ethereum. But the picture is slowly changing. With more institutional interest, steady technical improvements, and an active user base, the stage for Q4 looks promising. If the market mood turns positive and fresh inflows arrive, Solana has room to surprise with a strong rally.
That said, crypto has never been a straight road. Prices can climb quickly, but they can also fall just as fast. Uncertainty is part of the game. Even so, for anyone following the market closely, Solana is shaping up to be one of the coins worth paying attention to as the year comes to an end.
This post has been shared on Reddit by @tsnaks through the HivePosh initiative.