Bitwise CIO Matt Hougan says Avalanche deserves attention alongside bigger networks because its design lets institutions launch tailored chains. In his latest memo, he argues that avalanche stands out for compliance, control, and a different path to adoption.
Summary
A different model for institutional blockchain use
Hougan says Avalanche is not compelling because it leads the Layer 1 market. Instead, he says it matters because it is built differently from Ethereum and Solana. The network lets firms create custom blockchains with their own rules, validators, and access controls.
That setup, he argues, could appeal to banks, governments, gaming companies, and other regulated entities. They may want blockchain infrastructure, but they do not necessarily want a fully open public chain operating model.
Moreover, Hougan ties that thesis to growing activity across the network. He points to rising tokenized real world assets on Avalanche and to ecosystem names such as BlackRock, Apollo, Toyota, the State of Wyoming, and FIFA.
Why Hougan sees long-term upside
He argues that this mix could help Avalanche capture a share of a much larger market if hundreds of trillions of dollars eventually move onchain. That said, he frames the opportunity as part of a broader shift in how investors should view early Layer 1 network competition.
Instead of trying to pick a single winner, Hougan says investors should focus on networks with clear structural differences and a realistic path to long-term relevance. He includes Ethereum, Solana, XRP, and Avalanche in that group.
In this view, Avalanche is not just another blockchain competing for attention. It is a institutional blockchain with a distinct design, and Hougan believes that difference could matter over time.
