‘Solana Is the New Wall Street,’ Bitwise CIO Matt Hougan Explains

Bitwise CIO Matt Hougan has labeled Solana 'the new Wall Street,' citing its superior speed, throughput, and finality as crucial for attracting substantial investment flows in the burgeoning tokenization and stablecoin markets, a view echoed by global financial leaders. Despite this strong long-term endorsement, Solana's native token (SOL) recently consolidated before breaking below the $228-$229 support range with increased selling volume, suggesting potential for continued bearish momentum in the near term.

Analysis

‘Solana Is the New Wall Street,’ Bitwise CIO Matt Hougan Explains Hougan said Solana’s speed, throughput and finality make it “extraordinarily attractive” for those choosing which blockchain to invest in. What to know: - Hougan said stablecoins and tokenization will transform payments and securities, a view echoed by leaders at the SEC, Bank of England and BlackRock. - He argued Solana’s speed, throughput and finality make it “extraordinarily attractive” when evaluating blockchains. - He described Solana as “the new Wall Street” and said the story is resonating, predicting “substantial flows.” Solana’s role in the race to capture tokenized markets won new attention this week when Bitwise CIO Matthew Hougan called it “the new Wall Street.” Speaking with Solana Labs’ Akshay Rajan on Oct. 2, Hougan said global financial leaders increasingly recognize the disruptive potential of stablecoins and tokenization. He noted that the heads of the SEC and Bank of England, along with BlackRock’s CEO, have all signaled that digital assets could reshape payments and securities markets. Hougan added that this narrative resonates strongly with investors who understand the scale of change such technologies could bring. Hougan said that once audiences begin to consider how to gain exposure to blockchain, comparisons between platforms inevitably follow. In that evaluation, he argued, Solana’s combination of speed, throughput and near-instant finality makes it “extraordinarily attractive.” He cited improvements from 400 microseconds to 150 microseconds in settlement speed, describing the feature as intuitive for those accustomed to trading environments where execution and latency are critical. Framing Solana as “the new Wall Street,” Hougan said the blockchain’s technical edge is resonating with market participants. He said the narrative is “really resonant” and added that “you’ll see substantial flows.” Technical Analysis of SOL's Price Action According to CoinDesk Research's technical analysis data model, during the 23-hour session from Oct. 3 at 15:00 UTC to Oct. 4 at 14:00 UTC, SOL traded within a narrow $8.40 range between $228.19 and $237.04, reflecting a period of consolidation. The high was set at $237.04 around 16:00 on Oct. 3 before steady selling pressure pushed the price lower toward the $228–$229 area, which acted as support. Trading activity was strongest early in the session, with volumes peaking at 3.29 million units around 17:00, but gradually declined to just 42,637 by the closing hour of the analysis period. This sharp reduction in volume suggested weakening participation and a potential pause before a larger directional move. In the final 60 minutes, from 13:11 to 14:10 UTC on Oct. 4, SOL broke below the established $228–$229 support zone. Prices fell from $229.84 to $228.94, a 0.39% drop that confirmed the bearish shift. Within this window, the market showed two phases: an early rebound attempt that briefly lifted the price to $229.78 at 13:38, followed by renewed selling that drove the token down to $228.72. Importantly, this breakdown coincided with a surge in volume. The single busiest minute occurred at 14:01, when 18,011 units traded — the highest one-minute reading of the session. This pattern of falling price alongside rising volume suggested larger sellers were active, potentially increasing the likelihood that bearish momentum continues. Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy. More For You Total Crypto Trading Volume Hits Yearly High of $9.72T Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025 What to know: - Combined spot and derivatives trading on centralized exchanges surged 7.58% to $9.72 trillion in August, marking the highest monthly volume of 2025 - Gate exchange emerged as major player with 98.9% volume surge to $746 billion, overtaking Bitget to become fourth-largest platform - Open interest across centralized derivatives exchanges rose 4.92% to $187 billion Asia Morning Briefing: Why Russia-Linked Stablecoin Issuer A7A5 Could Exhibit at Token2049 Despite Singapore Sanctions Singapore made a bold move in its usual foreign policy of neutrality by sanctioning Promsvyazbank, a bank associated with the ruble stablecoin issuer A7A5, due to Russia's invasion of Ukraine. But A7A5 was able to legally make an appearance at Token2049 because the conference is organized by a Hong Kong entity. What to know: - A ruble-backed stablecoin tied to a sanctioned Russian bank sponsored Singapore's largest crypto event, raising compliance concerns. - Former White House Crypto Policy Director Bo Hines praised Tether's stablecoin at Token2049, while a sanctioned issuer also spoke. - Bitcoin hit a record high above $125,000 amid U.S. government shutdown fears and increased demand for safe-haven assets. A significant divergence has emerged between the long-term fundamental narrative for the Solana blockchain and the near-term technicals for its native SOL token. Bitwise CIO Matt Hougan provided a strong bullish thesis, labeling Solana "the new Wall Street" and citing its superior speed, throughput, and near-instant finality as drivers for "substantial flows" in the tokenization and stablecoin markets. This view is reinforced by endorsements from leaders at the SEC, Bank of England, and BlackRock regarding the disruptive potential of digital assets. Specifically, Hougan noted an improvement in settlement speed from 400 to 150 microseconds as a critical advantage. In stark contrast, recent technical analysis reveals a bearish setup for SOL. After consolidating within a narrow range between $228.19 and $237.04, the token broke below the key $228–$229 support zone. Crucially, this breakdown occurred on a surge in volume—with the busiest single minute seeing 18,011 units traded—which indicates strong selling pressure and increases the likelihood of continued downside momentum. This specific weakness in SOL occurs amidst a broader context of high market activity, including total crypto trading volume hitting a yearly high of $9.72 trillion.

Key Decisions for Investors

• Long-term investors who subscribe to the fundamental 'new Wall Street' thesis for Solana may consider the current technical weakness a potential accumulation opportunity, but should watch for price stabilization and volume confirmation.
• Short-term and tactical traders should note the bearish signal from the high-volume breakdown below the $228 support level, which suggests that hedging long positions or considering short-side exposure may be prudent until the trend reverses.
• All investors should monitor the $228 level closely, as an inability for SOL to reclaim this zone would reinforce the bearish technical outlook, whereas a decisive bounce could signal that the powerful long-term narrative is reasserting itself against immediate selling pressure.