Solana Treasury Firms Get Cantor Vote Of Confidence: 'We Expect Developer Growth To Continue'

Cantor Fitzgerald on Monday initiated coverage on three Solana SOL/USD treasury companies—DeFi Development Corp. DFDV, Upexi UPXI, and SOL Strategies HODL, predicting significant share price growth as Solana's high-performance blockchain gains traction in digital finance.

The research report assigns "Overweight" ratings with price targets of $45 for DFDV (74.9% upside), $16 for UPXI (59.8% upside), and C$4 for HODL.CN (65.3% upside), driven by Solana's technological edge and the companies' strategic capital-raising plans.

The report highlights Solana's ability to process 65,000 transactions per second with sub-$0.01 fees, positioning it to challenge Ethereum's dominance.

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"Developer growth on SOL has far exceeded that on ETH recently, and we expect this to continue," the analysts states, underscoring Solana's potential to overtake Ethereum ETH/USD, which has a market cap 259% larger than Solana's $86.3 billion.

DeFi Development Corp. is positioned as a leader, with a crypto-native management team and validator acquisitions.

"DFDV has the second-largest SOL position, has a crypto-native management team, has acquired multiple validators, and has access to the U.S. and European capital markets," the report notes.

The firm expects DFDV to raise "$250m in annual capital markets proceeds at an average premium of 250%," leveraging its U.S. listing to boost SOL-per-share.

Upexi, with the largest SOL holding at 679,677 tokens, benefits from NASDAQ liquidity but lacks validator operations.

"Upexi currently has the largest SOL position, sitting at 679,677, all of which was amassed this year," the report states.

It projects UPXI raising "$250m in annual capital markets proceeds at an average premium of 200%," though its non-crypto-native management and reliance on delegated staking may limit long-term SOL accretion.

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SOL Strategies, trading on the Canadian Securities Exchange, is nearing a NASDAQ listing, a key catalyst.

"HODL is close to the finish line for a potential U.S. listing, with a few ‘short items' being sorted," the analysts write, noting that this could "supercharge demand and liquidity" compared to its current $0.387 billion trailing twelve-month average daily volume.

The report emphasizes staking as a growth driver, with 66% of SOL staked yielding returns above the 4.518% inflation rate.

"Combining staking with treasury operations should result in Solana treasury companies growing SOL/share faster than BTC treasury companies," the analysts assert, highlighting DFDV and HODL's validator operations as an advantage over UPXI.

Real-world adoption bolsters Solana's outlook, with initiatives like Robinhood's HOOD blockchain-based securities trading, Apollo's $82 million tokenized credit fund, and Kraken's 24/7 tokenized U.S. stock trading.

These projects "highlight increasing user interactions due to the blockchain's high throughput and low fees," per the report.

However, risks loom, including regulatory uncertainty around SOL's classification and potential Solana ETF approvals.

"If the SEC classifies SOL as a security, this will add significant reporting, disclosure, and compliance requirements," the analysts warn.

A Bloomberg-estimated 70% chance of ETF approval could reduce demand for treasury companies, though their staking benefits maintain appeal.

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