Solana set to shine as financial applications expand, says Cantor

Solana’s growing footprint in the financial sector could position its treasury companies for rapid growth, according to a new report by Cantor Fitzgerald analyst Thomas Shinske, who initiated coverage of Solana-focused firms with an “overweight” rating on Monday.

He argues that increased liquidity, low transaction costs, and staking rewards offer SOL an edge over other cryptocurrencies in the treasury asset space.

While Bitcoin remains the dominant crypto treasury asset, popularized by Michael Saylor’s Strategy, Shinske believes Solana offers more efficient, scalable solutions for institutional finance, especially as the industry explores tokenized securities.

“With increased liquidity making it easier to raise capital, Solana treasury companies can follow the ‘Saylor playbook’ and raise capital at a premium to NAV, purchase SOL, and increase SOL-per-share,” Shinske said

Solana-linked firms surge as Shinske flags $250M capital potential

Shinske pointed to several firms poised to benefit from Solana’s cachet. DeFi Development Corp., a blockchain protocol and SOL treasury company came out as the number one choice. With the firm’s US capital markets access and a crypto-native leadership team, the firm is expected to raise $250 million annually at an average premium of 250% to net asset value (NAV).

Nasdaq-listed Upexi Inc., an e-commerce company, was also estimated to raise $250 million yearly, even though it has less presence in the Solana ecosystem. SOL Strategies Inc., a Canadian operation, is another company on the cusp of getting listed in the US and is anticipated to raise the same amount at a 250% premium. Shinske commended the company’s forward-looking approach toward SOL despite a more passive approach to acquiring SOL on the open market.

Those companies’ stock rallied on the news, with DeFi Development surging as much as 19% on Monday. Upexi soared 12%, and SOL Strategies rose 9.4%.

Staking edge positions Solana treasury firms for faster growth than Bitcoin peers

Unlike Bitcoin, Solana allows token holders to stake their assets directly to validate transactions, earning rewards in the process—without diluting equity. This, Shinske says, gives SOL treasury firms a structural advantage.

“Combining staking with treasury operations should result in Solana treasury companies growing SOL/share faster than BTC treasury companies growing BTC/share, all else equal,” he wrote.

Although SOL remains more volatile than Bitcoin and currently has a lower total value locked (TVL) than Ethereum, Shinske sees it as a potential frontrunner in the evolving treasury asset market.

SOL is currently trading around $157, a 19% drop on the year. By contrast, Ethereum (ETH) is nursing 21% losses and changing hands for $2,644, while Bitcoin is up 14% for the period and is exchanging hands for $107,597.

Even in the face of market headwinds, Cantor Fitzgerald’s endorsement puts Solana treasury companies in pole position as a new means of crypto exposure, particularly for the investors who can’t go straight to the source or custody a digital asset themselves.

With Shinske now the sole Wall Street analyst with formal coverage of Solana treasury companies, the sector may experience more institutional interest, especially if Solana’s use in financial apps continues to do well.

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Original reporting: cryptopolitan.com