SOL is more cost-effective than ETH,
Bullish on SOL! Cantor Fitzgerald begins to focus on Solana's treasury companies (HODL CN, DFDV, UPXI), giving it an "outperform" rating.
The balance sheets related to Solana should receive a higher premium than companies related to BTC, as the former has native income opportunities and higher volatility.
Initiating Coverage
Paving the way for the next wave of digital finance; initiating coverage on Solana (SOL) treasury companies.
We will start reporting on the three main treasury businesses of Solana (SOL): DeFi Development Corp., Upexi, and Sol Strategies. Despite several companies attempting to emulate Michael Saylor's approach to Bitcoin (BTC) with MSTR (OW), these enterprises are taking different strategies, focusing on SOL. For those unfamiliar, SOL is an L1 blockchain that offers higher throughput and lower costs compared to its main competitor Ethereum (ETH). SOL can handle up to 65,000 transactions per second, with transaction fees typically below $0.01. As of today, SOL is the sixth-largest cryptocurrency, with a market cap of approximately $86.3 billion.
BTC vs. SOL. We believe BTC is particularly suitable as a strategic reserve asset and has already gained market recognition to some extent. We do not believe this is SOL's pursuit. If BTC has established itself as the foundational reserve currency or asset of the digital economy, then Solana's goal is to become the technology that drives transactions and markets in the digital economy. SOL is the native cryptocurrency of the Solana blockchain, which is a high-performance layer 1 blockchain with extremely high throughput and very low fees, making it an ideal choice for driving decentralized financial applications and real-world use cases. Therefore, we believe that SOL treasury companies are betting that the future of finance will be built on blockchain, with Solana being the preferred blockchain.
