Solana News Today: Regulators Hold Key as Solana Aims to Disrupt Stablecoin Markets

Solana Is the New Wall Street, Says Bitwise CIO, Calling It ...^[1] Matthew Hougan, Chief Investment Officer at Bitwise, has positioned Solana as a potential "new Wall Street" for stablecoin networks, citing its technical advantages in speed, throughput, and settlement finality. Speaking on October 2, 2025, Hougan highlighted that global financial leaders, including the U.S. Securities and Exchange Commission (SEC), Bank of England, and BlackRock, have increasingly acknowledged the disruptive potential of stablecoins and tokenization. He emphasized Solana's ability to settle transactions in under 150 microseconds-down from 400 microseconds-making it particularly attractive for high-frequency trading environments where latency is critical.

The Rise of Stablecoins on Solana: What 2025 Data …^[2] Stablecoin adoption on Solana has surged, with its hosted stablecoin supply surpassing $10 billion in 2025, a 77% increase in seven days. USDC dominates Solana's stablecoin ecosystem, accounting for 77.23% of the market share. This growth is attributed to Solana's low transaction fees (averaging $0.005) and faster settlement times compared to Ethereum ($1.75) and Tron. Analysts note that Solana's DeFi ecosystem, including platforms like Jupiter and Orca, has driven significant on-chain activity, with daily trading volumes exceeding $1.7 billion in Q1 2025.

Ethereum and Solana Lead Stablecoin Growth: What It Means^[3] The rise of Solana's stablecoin infrastructure has sparked speculation about its potential to challenge Ethereum's dominance. While Ethereum hosts $160 billion in stablecoins, Solana's supply has grown 15x faster in 2025. Hougan predicted "substantial flows" into Solana as institutional and retail investors prioritize speed and cost efficiency. CoinPedia analysts added that Solana's technical architecture-combining Proof of Stake (PoS) with Proof of History (PoH)-enables 65,000 transactions per second (TPS), far outpacing Ethereum's Layer 2 solutions. This has attracted fintech firms and payment providers, particularly in emerging markets, to adopt Solana-based stablecoins for remittances and cross-border transactions.

Solana’s Stablecoin Surge: Can It Challenge Ethereum’s …^[4] Regulatory developments and ETF approvals are pivotal for Solana's next phase. The U.S. SEC has delayed its decision on Solana ETF proposals from Bitwise, 21Shares, and other firms until October 16, 2025. Bloomberg analysts estimate a 95% approval chance, which could catalyze institutional inflows. If approved, the ETFs would mirror Bitcoin and Ethereum spot ETF structures, offering traditional investors regulated exposure to Solana without holding the asset directly. Market reactions to the delay were mixed: while institutional interest in custody solutions and futures contracts remains strong, some meme tokens (e.g., BONK) fell sharply in 24 hours.

‘Solana Will Eclipse Ethereum Gains in Q4’ | BTC, ETH, …^[5] Price projections for Solana hinge on stablecoin adoption and ETF outcomes. Historical data from Artemis shows that a 93% surge in stablecoin supply on Solana in 2021 preceded a 45% rise in SOL's price. If current trends continue, analysts predict SOL could reach $360 by March 2025. However, caution persists: stablecoin lending yields on Solana remain low (6-7% APY), suggesting markets are not yet in peak euphoria. Additionally, Ethereum's institutional credibility and role as a stablecoin backbone may limit Solana's long-term gains, though its growth in retail and DeFi activity positions it as a strong contender for short-term outperformance.

Solana ETFs Face SEC Delay, Decision Postponed to …^[6] The competition between Solana and Ethereum reflects broader shifts in blockchain adoption. While Ethereum maintains a 70% share of global stablecoin supply, Solana's transaction volume has outpaced Ethereum in Q1 2025. This is driven by USDC's migration to Solana, where it now accounts for 5.4% of total stablecoin market share (up from 1.6% in 2024). Solana's expansion is also supported by infrastructure improvements, including state compression and Firedancer upgrades, which enhance scalability and reduce network risks. However, challenges remain: past outages and concerns about decentralization could hinder long-term trust, particularly as regulatory scrutiny intensifies globally.

Solana ETF verdict extended to mid-October - Cryptopolitan^[7] Institutional and retail investors are closely watching October 2025 as a potential inflection point. If the SEC approves Solana ETFs, it could trigger a "giga rally" in SOL prices, fueled by both speculative and strategic capital. Meanwhile, Ethereum's rollup-centric upgrades and established DeFi ecosystem ensure its dominance in institutional markets. The outcome of this competition will shape the future of stablecoin adoption, with Solana's speed and cost advantages likely to solidify its role in retail payments and high-frequency trading, while Ethereum retains its position as the backbone of institutional finance.