Amid the digital gold rush to imitate Technique’s bitcoin treasury reserve, Cantor analysts initiated coverage of three corporations which have opted for solana treasuries: DeFi Development Corp, Sol Methods, and Upexi.
“Bitcoin will get loads of focus (rightfully so), however SOL is being ignored,” they wrote in a June 16 be aware.
Cantor analysts argued that solana is superior to its major competitor, ethereum, particularly as a result of it “provides superior throughput and decrease value.”
Solana is the sixth-largest crypto, with a $79 billion market cap.
The analysts wrote:
“Developer progress on SOL has far exceeded that on ETH not too long ago, and we count on this to proceed. Thus, utilizing SOL over ETH as a treasury asset is smart: these companies suppose that SOL can overtake ETH, which presently has a market cap that is ~259% increased than SOL.”
An enormous differentiator between SOL and BTC treasuries is the power to stake, they argued, including that it will assist “Solana treasury corporations rising SOL/share quicker than BTC treasury corporations rising BTC/share.”
They mentioned, nonetheless, that bitcoin is nonetheless thought-about “the most secure and most-decentralized digital asset with its main use-case being a reserve asset defending in opposition to financial debasement.”
Joseph Onorati, CEO and chairman of DeFi Dev Corp., advised Sherwood Information that each ethereum and solana are appropriate for a crypto treasury technique.
“They’re each extremely risky, earn native yield, and have energetic DeFi communities the place a treasury technique firm may very well be energetic,” he mentioned.
Cantor has an “chubby” score on DeFi Dev and a $45 worth goal, a big upside from the present worth of $30.
In the meantime, Cantor has an “chubby” score on Upexi, with a $16 worth goal, representing a 60% upside from this morning’s worth of $10.
Brian Rudick, Upexi’s chief technique officer, advised Sherwood that he views bitcoin as the very best financial asset and solana as the very best high-performance blockchain.
“With a lot of the success of a digital asset treasury firm decided by the efficiency of the cryptocurrency it holds, it’s crucial for a digital asset treasury firm to be underpinned by an endgame profitable asset reminiscent of solana,” Rudick mentioned.
Rudick additionally argued that it’s “the very best high-performance blockchain for 3 causes.”
It’s one of the primary second-generation sensible contract blockchains, enabling it to have each best-in-class know-how and community results; it additionally has one of probably the most vibrant ecosystems of customers, builders, and dapps.
“Lastly, Solana is main on many key metrics, reminiscent of each day common customers, dapp income, and DEX volumes, even at a smaller market cap in comparison with another chains,” he added.
Lastly, Cantor analysts have an “chubby” score on Sol Methods, with a CA$4 (US$2.95) worth goal, representing a 62% upside from the present worth.
The Canadian publicly listed firm (*3*) an preliminary prospectus “permitting for as much as $1B USD in potential financings.”
SOL Methods CEO Leah Wald advised Sherwood that Cantor’s coverage displays the rising institutional recognition of solana’s potential.
“What issues is having the fitting chain for the fitting use case, and in terms of selecting a singular treasury asset, solana’s distinctive ideas present for an attention-grabbing alternative,” she mentioned.
Yesterday, MemeStrategy, Asia’s first publicly listed digital asset firm, introduced it acquired 2,440 SOL, “establishing it as the primary Hong Kong-listed firm to put money into the Solana ecosystem,” in line with a press release.
