Solana Poised for Major Year-End Rally as ETF Filings and Treasury Purchases Fuel Optimism

Solana, the high-speed blockchain known for its low-cost transactions, is gaining traction as a prime candidate for a significant price rally by year-end, according to Bitwise Chief Investment Officer Matt Hougan. In a recent memo to clients, Hougan outlined a compelling case for what he calls “Solana season,” driven by a combination of exchange-traded product inflows and corporate treasury purchases. With Solana’s total market value at just $119.4 billion, compared to Bitcoin’s $2.2 trillion and Ethereum’s $522.6 billion, even modest investment flows could have an outsized impact on its price, potentially mirroring the dramatic gains seen in Bitcoin and Ethereum over the past year.

Hougan pointed to the success of Bitcoin and Ethereum as evidence of what happens when demand outpaces supply. Bitcoin surged from $40,000 in January 2024 to nearly $125,000, while Ethereum tripled to a peak of $5,000 in August 2025, fueled by significant buying from exchange-traded funds and corporate treasuries. During these periods, Bitcoin’s network produced 322,681 BTC while ETPs and corporations acquired over 1.1 million BTC, and Ethereum’s network minted 388,568 ETH against 7.4 million ETH purchased, demonstrating the power of supply-demand dynamics.

Why Solana Stands Out

Several factors position Solana as the next blockchain to experience a similar trajectory. Major asset managers, including Grayscale, VanEck, Franklin Templeton, Fidelity, Invesco/Galaxy, Canary Capital, and Bitwise, have filed for spot Solana ETFs in the U.S., with the Securities and Exchange Commission set to decide by October 10. These potential ETF launches in the fourth quarter could unlock significant retail and institutional investment. Additionally, REX-Osprey’s SSK fund, the first U.S. ETF offering Solana exposure with native staking rewards, launched in July under the Investment Company Act of 1940, holding at least 50% of its assets in directly staked SOL.

While the SSK fund has attracted $195.1 million in net inflows, it pales in comparison to the $5.8 billion and $8.4 billion drawn by Bitcoin and Ethereum ETFs, respectively. Hougan suggested that traditionally structured spot Solana ETFs under the Securities Act of 1933 could see stronger demand, given their alignment with the frameworks used for Bitcoin and Ethereum products. Beyond ETFs, corporate interest is growing, with Galaxy Digital, Jump Crypto, and Multicoin Capital committing $1.65 billion to Forward Industries, a new Solana-focused treasury company led by Multicoin co-founder Kyle Samani, who Hougan praised as a vocal advocate for the blockchain.

Solana’s appeal lies in its technical advantages, particularly its speed and cost efficiency. Hougan highlighted Solana’s ability to process transactions in milliseconds for less than a cent, especially after a pending upgrade, making it a leading platform for stablecoins, tokenized assets, and decentralized finance. Unlike Ethereum, Solana operates without reliance on Layer 2 solutions, offering a streamlined user experience. Despite concerns about centralization, Solana ranks third in stablecoin liquidity and fourth in tokenized assets, with a 140% increase in tokenized assets under management this year.

The smaller market cap of Solana compared to Bitcoin and Ethereum is an important factor in its potential for price growth. Hougan noted that Forward Industries’ $1.65 billion investment in Solana could have a price impact equivalent to a $33 billion purchase in Bitcoin, given Solana’s market cap is just 5% of Bitcoin’s and 23% of Ethereum’s. However, Solana’s higher annual inflation rate of 4.3%, compared to Bitcoin’s 0.8% and Ethereum’s 0.5%, may temper some of these gains, requiring sustained demand to maintain upward momentum.

Solana’s recent performance highlights its growing momentum. Over the past week, the SOL price rose 5%, moving from a low of $200 to $220. In the last 90 days, Solana has climbed 40%, and over the past year, it has gained 62%, reflecting strong investor interest. As ETF approvals approach and corporate investments accelerate, Solana’s unique combination of technological strengths and market dynamics could set the stage for a breakout performance in the coming months.