Solana Outpaces Ethereum in Developer Growth, Attracts Institutional Trust

Cantor Fitzgerald analysts have recently positioned Solana (SOL) as a more favorable treasury asset compared to Ethereum (ETH), despite Ethereum's longer track record and higher total value locked (TVL). The analysts highlighted that developer growth on Solana has outpaced Ethereum in recent months, making it a key factor in this shift. This outlook comes as the firm initiates coverage on three companies accumulating Solana: DeFi Development Corp., Upexi, and SOL Strategies.

Solana’s developer growth has surpassed Ethereum’s, signaling its potential as a leading blockchain. This pattern is likely to persist, making Solana one of the most useful blockchains for decentralized applications and finance. Although Ethereum has been dominating with its multiple uses and TVL, the growth rates of its developers are already indicating that Solana can take the lead over Ethereum in the near future. The company believes that the demand for Solana will increase in the future, particularly as companies seek an alternative to Ethereum due to its high costs and the slow transaction process time.

DeFi Development Corp., Upexi, and SOL Strategies are among the companies now accumulating significant amounts of Solana as part of their treasury strategy. DeFi Development Corp., for example, began purchasing Solana in April, acquiring over 620,000 SOL tokens. This move aligns with the firm’s broader strategy of embedding itself within the Solana ecosystem by developing liquid-staking tokens, acquiring validators, and forming new partnerships. Cantor Fitzgerald has set a $45 price target on DeFi Development Corp.’s stock, which has risen by over 20% since the firm began accumulating SOL. Upexi, another company in Cantor’s coverage, has seen a slight decline in its stock price, with Cantor’s target set at $16. The third company, SOL Strategies, a Canada-based firm, is projected to see a rise in its stock price, from about C$2 to C$4.

Recent events indicate an increased institutional trust in the future of Solana. One of the largest cryptocurrency platforms, Bybit, announced the release of Byreal, a decentralized trade on SOL. Byreal is a hybrid between centralized and decentralized finance: it is more liquid than a decentralized exchange, but transparent at the same time. It is likely to release its testnet at the end of June 2025. Moreover, SOL received its first investment in the region, as a company called MemeStrategy became the first public entity that be invested in. This achievement reflects the growing institutional demand for Solana as a possible digital currency. The investment was made in OSL Group- digital assets first licensed by SFC in the region.

There is an increasing confidence around Solana, especially since it has major U.S. ETF potential that can be granted. Analysts believe that the SEC will allow ETFs that track SOL and other altcoins by next month. Such a trend might grant more institutional backing to SOL and, in turn, complement its status in the digital assets environment. As all these conditions are coming into play, the ecosystem started to demonstrate the resilience and the increased confidence of the institutional and retail investors.