Cantor Fitzgerald Sees Promise in Solana’s Institutional Adoption
Investment bank Cantor Fitzgerald has begun coverage on three publicly traded companies that are embracing Solana-based treasuries, underscoring their view that Solana’s native token, SOL, is on track to become an attractive asset for institutional investors, similar to Bitcoin’s positioning as a corporate reserve asset.
The banks’ report, sourced from Bloomberg, highlights DeFi Development Corp., Upexi, and Sol Strategies as key players that have adopted strategies focused on accumulating SOL as part of their corporate treasury management. This strategy mirrors the approach taken by companies such as MicroStrategy, which has significantly invested in Bitcoin.
Despite acknowledging that SOL is not yet on the same level as Bitcoin for reserve asset status, analysts assert that using SOL as a treasurial asset presents strong arguments, particularly when compared to Ethereum. Their analysis reveals that:
- Developer Activity: Growth in developer engagement on the Solana network has recently surpassed that on Ethereum, suggesting a promising trajectory for Solana.
- Treasury Viability: Firms are considering SOL’s potential to eventually rival Ethereum, which currently shows a market capitalisation approximately 259% higher than SOL.
In the words of Cantor Fitzgerald analysts, “Developer growth on SOL has far exceeded that on ETH recently, and we expect this to continue. Using SOL over ETH as a treasury asset makes sense.”
Solana’s Future: A Focus on Transactional Efficiency
The investment bank points out that accumulating SOL represents a forward-looking investment, particularly focusing on transactional activity and the adoption of developers over the coming years. While Bitcoin has established itself as the foundational asset for the digital economy, Solana is positioned as the technology powering transactions and market interactions within this ecosystem.
Cantor Fitzgerald’s outlook rests on the premise that while Bitcoin retains its status as the premier reserve asset, Ethereum boasts the highest value locked, Solana stands out for its advantages in transaction-heavy and developer-centric applications.
Lead in Developer Attraction
Solana’s appeal is evident; according to Electric Capital, it has emerged as the leading non-EVM blockchain for attracting new developers. By late 2024, Solana had registered over 7,600 new developers, representing an 83% year-on-year increase, eclipsing Ethereum in this respect.
Out of nearly 40,000 new developers entering the crypto domain that year, Solana enticed more than 20%. This achievement positions Solana as a highly attractive option for blockchain entrepreneurs and projects seeking innovative solutions.
In summary, while Bitcoin and Ethereum currently dominate the landscape of digital assets, Cantor Fitzgerald’s insights suggest that Solana is increasingly presenting itself as a worthy contender, particularly for those looking to invest in the future of transactional networks and applications within the cryptocurrency space. As Solana continues to expand its developer base and enhance its infrastructure, its potential as an institutional asset appears ripe for exploration in the years ahead.
