solana

Bitwise believes the dominant narratives driving the crypto market are shifting in a way that is structurally and profoundly bullish for Ethereum, Solana, and stablecoins. According to the firm, long-term demand forces, sustained ETF inflows exceeding net issuance, and accelerating regulatory clarity could fuel a new growth cycle extending into 2026 and beyond.
In its recently published report, “10 Crypto Predictions for 2026,” Bitwise argues that the market is entering its next expansion phase, one that no longer revolves around a single flagship asset. Instead, growth is spreading across core infrastructure layers, with Ethereum, Solana, and stablecoins acting as the backbone.
“We are bullish on Ethereum and Solana. Very bullish,” Bitwise stated. “Stablecoins and tokenization are becoming mega-trends, and Ethereum and Solana are likely to be the biggest beneficiaries of that growth.”
Demand Driven by Structure, Not Speculation
Bitwise emphasizes that its optimism is not based on short-term price action, but on durable, long-horizon demand drivers.
Ethereum continues to serve as the central settlement layer for:
Decentralized finance (DeFi)
Stablecoin issuance
Real-world asset (RWA) tokenization
Meanwhile, Solana has emerged as a leading high-throughput blockchain optimized for:
Fast, low-cost payments
Consumer-facing applications
High-volume stablecoin transfers
This complementary positioning allows both networks to capture different segments of the same expanding market.
ETF Inflows Are Absorbing New Supply
One of the most compelling data points highlighted by Bitwise is the behavior of institutional capital following the launch of U.S. spot crypto ETFs.
Since their introduction, institutional investment vehicles have purchased more newly issued ETH and SOL than the total net supply created by both networks over the same period. This imbalance has generated a persistent demand pressure, independent of speculative trading cycles.
Bitwise links this phenomenon directly to improving regulatory conditions, which have enabled:
Banks
Asset managers
Capital allocators
to gain exposure through regulated investment products, rather than unregulated spot markets.
Regulation as the Key Catalyst for Stablecoins
While adoption is accelerating globally, Bitwise stresses that regulatory clarity remains the single most important variable for stablecoins and the blockchains supporting them.
The report notes that 2025 marked a major milestone with the passage of the GENIUS Act, focused on stablecoin oversight in the U.S. However, for the next phase of growth, Bitwise argues that Congress must pass comprehensive market-structure legislation—specifically, the CLARITY Act.
Such legislation would define regulatory boundaries between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, dramatically reducing uncertainty for institutional players.
Bitwise’s conditional conclusion is clear:
If the CLARITY Act is passed, Ethereum and Solana are likely to set new all-time highs.
Stablecoin Market Expansion Accelerates
The firm also highlights the explosive growth of the stablecoin market itself. Total stablecoin supply has already expanded from around $205 billion to nearly $300 billion, and Bitwise projects it could approach $500 billion by the end of 2026.
Adoption is particularly strong in regions facing:
High inflation
Currency instability
Capital controls
In these environments, stablecoins function not just as trading tools, but as essential payment and value-storage instruments—a trend that directly reinforces Ethereum and Solana’s role as foundational settlement layers.
The Bigger Picture
Taken together, these dynamics suggest that Ethereum and Solana are no longer driven primarily by speculative cycles. Instead, they are becoming core financial infrastructure for a rapidly expanding digital economy.
While price volatility remains inevitable, Bitwise’s analysis frames ETH and SOL as assets increasingly supported by structural demand, institutional participation, and regulatory momentum—the same forces that historically underpin long-lasting market cycles.
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