A new trend has emerged in crypto finance, wherein multiple publicly traded companies are after Solana to make it a Treasury asset.

A new trend has emerged in crypto finance, with multiple publicly traded companies pivoting to make Solana a Treasury asset. Cryptocurrency journalist Laura Shin reports that three companies – Sol Strategies (NYSE:SOL), DeFi Development Corp (NYSE:DVLP), and Upexi (NYSE:UPEX) – have adjusted their business models to concentrate on holding Solana as a treasury asset.

All three firms had established their business operations before making the switch to Solana Treasury Companies, similar to how Strategy (NASDAQ:STGY) transformed into a Bitcoin holding company. The trend comes during a period of strong performance for Solana, which has seen its market capitalization reach approximately $76.35 billion.

Solana’s Rising Appeal as Treasury Asset

Although Solana’s popularity needs no introduction, the sudden spike in interest has garnered attention. Being less complex than Ethereum, boasting a full ecosystem, and handling transactions quickly and less expensively are reasons that investors cite for Solana being an appealing treasury asset.

Adding to the momentum, at least six Solana spot ETF filings have been submitted to the SEC, potentially giving institutional investors a safe way to invest in the asset. Market analysts also stated that Solana’s good performance in 2024 is another key reason for it being chosen as a treasury asset. Notably, the cryptocurrency has taken some market share from Ethereum, which faced challenges in slow growth and internal conflict.

While Ethereum maintains a $220.1 billion valuation compared to Solana’s $76.35 billion, the gap has narrowed to the smallest margin since November 2022. Solana’s rise is even more impressive, considering it rebounded after the fall of FTX, from a low of $4.51 billion, gaining over 1,425.3% in value since then. Solana was also the primary beneficiary of the meme coin trend that swept through cryptocurrency markets in 2024.

Related: Solana Fixes Critical Zero-Day Bug That Could Have Enabled Unlimited Token Theft

The shift toward Solana treasury companies comes as the original Bitcoin treasury strategy faces increased competition. Strategy, the first major public company to adopt Bitcoin as its primary treasury asset, now contends with multiple firms replicating its approach with different cryptocurrencies.

Further, market observers have raised questions about the sustainability of this business model, as it expands beyond Bitcoin to Solana. “The Bitcoin treasury company market is getting crowded, and now companies are extending the Strategy playbook to Solana. Can they last?” Shin asked in her analysis of the trend.