Cantor Fitzgerald has begun covering three Solana treasury companies, considering hoarding Solana cryptocurrency advantageous. Although Solana is not viewed as a reserve asset like Bitcoin, analysts believe Solana is superior to Ethereum due to its developer growth far exceeding that of Ethereum. DeFi Development Corp. has purchased over 620 thousand SOL since April and is actively expanding the Solana ecosystem. Cantor has set price targets for the three companies as follows: DeFi Development Corp. at $45, Upexi at $16, and SOL Strategies at 4 CAD. Analysts believe Solana is poised to become the transactional and market technology foundation of the digital economy.

Cantor Fitzgerald said Monday it has begun covering three Solana treasury companies, citing what it sees as the advantages of stockpiling the cryptocurrency.The investment bank initiated coverage of DeFi Development Corp., Upexi, and Sol Strategies — three companies aiming to replicate the success of Strategy, the Bitcoin-focused treasury firm that has seen its market cap and share price surge alongside the price of BTC.Although Cantor analysts said they don’t view Solana as a reserve asset akin to Bitcoin, they see SOL as superior to its main rival, Ethereum, despite Ethereum having a longer track record and a larger total value locked (TVL)."Developer growth on SOL has far exceeded that on ETH recently, and we expect this to continue," the analysts said in their note. "Using SOL over ETH as a treasury asset makes sense: these businesses think that SOL can overtake ETH, which currently has a market cap that is ~259% higher.""If BTC has solidified itself as the foundational reserve currency, or asset, for the digital economy, Solana aims to be the technology that powers transactions and marketplaces in the digital economy," the analysts also said. "We believe SOL treasury companies are betting the future of finance will be on-chain and that the chain of choice will be Solana."Some smaller companies announcing ambitious plans to accumulate large amounts of cryptocurrency, however, might not have legitimate intentions, Matthew Sigel, VanEck's Head of Digital Assets, said last week.DeFi Development Corp., which began buying Solana in April, has acquired more than 620,000 SOL since adopting its new strategy, Cantor noted. The company has also developed a liquid-staking token, acquired two validators, and formed new partnerships to embed itself in the Solana ecosystem further. Cantor set a $45 price target on the company’s shares, which were up more than 20% to $31.25 as of 3:46 p.m. ET, according to Yahoo Finance.Upexi, another firm now under Cantor’s coverage, had fallen nearly 3% to $9.76 per share by the same time. Cantor’s target for Upexi is $16.The final company, Canada-based SOL Strategies, is expected to rise from about C$2 to C$4, according to Cantor.

Cantor Fitzgerald is optimistic about Solana as a treasury asset, considering it superior to Ethereum.