Modest Solana Investment Can Double Portfolio Returns, Study Finds
Bitcoin might dominate institutional consideration because the cornerstone of digital belongings. However, new analysis means that modest publicity to Solana (SOL) may considerably enhance portfolio effectivity.
A examine by Capital Markets, drawing on Bitwise knowledge, discovered that even a small Solana allocation enhances risk-adjusted returns in a conventional 60/40 portfolio of equities and bonds.
How Solana Allocations Produce Strong Returns
The evaluation revealed that including simply 1% SOL publicity lifted annualized returns to 10.54%, with a Sharpe ratio of 0.696.
According to the report, rising that share to 2.5% boosted returns to 16.64% and produced a Sharpe ratio of 1.093. A 5% weighting, in the meantime, generated 26.22% returns with a Sharpe ratio of 1.412.
Capital Markets additionally identified {that a} 10% higher-risk allocation will push the portfolio’s annualized returns to 43.88%, with a Sharpe ratio of 1.687.
Capital Markets stated these outcomes show how measured SOL publicity can strengthen long-term portfolio efficiency. However, diversification altered the result.
When a ten% crypto allocation was cut up equally amongst Bitcoin, Ethereum, and Solana, annualized returns dropped to 19.87%. Notably, that is considerably lower than half of Solana’s solo efficiency.
Meanwhile, a 50:30:20 cut up between Bitcoin, Ethereum, and Solana yielded 16.18% returns. Smaller allocations of 5% and a couple of.5% produced regular however average enhancements of 11.33% and eight.84%, respectively.
“Maximum drawdowns remained comparatively contained throughout allocations, whilst returns elevated sharply,” Capital Markets acknowledged.
Considering this, the agency concluded {that a} concentrated Solana publicity delivered greater features. However, a diversified portfolio supplied smoother, extra constant development.
Solana’s on-chain fundamentals assist clarify its efficiency edge.
The community, identified for low transaction charges and high throughput, processed roughly 96 million every day transactions within the first quarter of 2025 amid the fervor for meme coins.
At the identical time, the blockchain community has scored important institutional adoption and user growth across payments, gaming, and shopper purposes. Notably, Solana is the second-largest decentralized finance ecosystem with greater than $11 billion in worth locked.
This increasing ecosystem continues to strengthen SOL’s funding enchantment. Its effectivity and scalability place it as a reputable next-generation blockchain for decentralized purposes.
Moreover, with hypothesis rising round a potential US spot Solana ETF, the asset now dominates discussions about crypto’s evolving position in fashionable portfolio concept.
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