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What’s next for India’s economic ascent?
Since China’s lacklustre post-COVID reopening, we’ve been asked some form of this question many times—“Is India the next China?”
With its more youthful population, India recently surpassed China as the world’s biggest nation. Its manufacturing and services purchasing managers’ indexes (PMI) have long been in expansion mode as the world’s largest democracy continues to lure investment from foreign tech giants. What’s more, India took big leaps forward in aerospace achievements and diplomatic leadership last year as host of the G20 summit. India has drawn praise for embarking on a path of military modernization and reducing its reliance on Russian defence equipment. And by 2026, about US$534 billion in new infrastructure is expected to be rolled out, equal to the inflation-adjusted value of all infrastructure built over the past 11 years, according to Bloomberg Economics. Earlier this year, India also struck a new trade agreement with the European Free Trade Association (EFTA) to lift tariffs in exchange for US$100 billion in foreign direct investment commitments. The EFTA accord is expected to generate 1 million jobs in India over the next decade and a half.
Few would disagree that India is benefiting from China’s slowdown. But especially now that the dust has settled over Prime Minister Narendra Modi’s electoral setback, we believe the political outcome underpins the view that this noisy democracy is distinctly different.
Rather than splintering, several opposition parties united during general elections in what amounted to an anti-BJP (Bharatiya Janata Party) vote that presented hurdles for Modi even as the untested new coalition government could still prove fractious and unstable. Despite difference in political ideology, we believe all sides are committed to the same underlying objective of advancing India’s economy, and to some extent the infighting amounts to jockeying for credit over positive outcomes. Nevertheless, the divided power structure arguably bodes well for the country’s consensus-building process—a positive in our view.
We remain optimistic that policy reforms already in place set a strong foundation for export growth and the ongoing rise of a new class of Indian consumers. Certain sectors like energy and defence also tend to be less sensitive to partisan issues, and India remains a trusted value-chain partner for electronic device and chip manufacturers.
Consider that India’s equity market recouped post-election losses of nearly 6% for the S&P CNX Nifty Index at the fastest rate in recent history—over merely three sessions. The rebound reflects unwavering confidence among domestic retail investors. The country’s retail inflation also edged lower in May to 4.75%, down from 4.83% in April, aided in part by lower fuel prices despite continued elevated food prices, according to new government data.
In January this year, the Indian stock exchange even overtook that of Hong Kong’s in capitalization (US$4.3 trillion versus US$4.29 trillion), reflecting India’s exceptional 2023 performance. This year, the Nifty 100 Index is up 12.7% year-to-date through June 20, compared to 9.3% for FTSE Emerging Index over the same period (returns are in USD).
Most broad emerging market (EM) benchmarks are still heavily weighted toward China, though solid performance among Indian equities has been closing this gap. A case in point for India’s rising prominence in EM: In May, MSCI boosted India’s weighting in its Emerging Market Index to nearly 19%, up from roughly 9% in 2020.
Investors seeking more targeted exposure to India may find single country exchange-traded funds to be compelling low-cost building blocks for asset allocation. For those wanting to tap exposure to India’s attractive mid-cap segment, keep in mind that some indexes offer a deeper portfolio compared to others.
India’s equity markets are also well-diversified across sectors and company types that potentially offer an elevated growth outlook and opportunities driven by domestic consumption and emerging industrial prowess. Financials hold the largest share, followed by significant consumer discretionary, industrial, energy and technology weightings. The market also offers good exposure to consumer staples, utilities and health care names.
As India’s gross domestic product (GDP) is forecast to increase at an average of 6.5% annually over the next five years, we feel optimistic that this diverse and dynamic economy can potentially realize a multi-decade growth story, perhaps with even hardier democratic checks in place.
Bitcoin advocate and Strategy’s founder, Michael Saylor, kicked off the trend of incorporating Bitcoin into the company’s balance sheet back in 2020, and now, it’s catching fire. This year, alongside institutional adoption and the rise of nation-state involvement, corporate Bitcoin holdings have surged dramatically. Companies have invested an estimated $25 billion in Bitcoin in just the first five months of 2025. This influx accounts for about 1.20% of Bitcoin’s total fixed supply, underscoring a supply-demand imbalance that’s fueling Bitcoin’s growing appeal as a treasury asset.
Source: 21Shares, BitcoinTreasuries, Data as of January 1, 2025.
Which companies are betting on Bitcoin?
One prominent example of corporate Bitcoin adoption is GameStop, the American video game retailer, which recently raised $1.5 billion to build its Bitcoin reserve. Known for its role as a meme stock in early 2021, when retail investors on Reddit’s WallStreetBets forum triggered a massive short squeeze, GameStop survived the saga with spare capital. This resilience allowed the company to revamp its commercial strategy, positioning it to strategically deploy capital into Bitcoin and align with the growing trend of corporate crypto adoption.
Adding to this momentum, Strive Asset Management, backed by entrepreneur Vivek Ramaswamy, announced plans to go public via a reverse merger with Nasdaq-listed Asset Entities, aiming to become a publicly traded Bitcoin treasury company. Strive targets up to $1 billion in capital through equity and debt offerings to accelerate its Bitcoin accumulation, with plans for equity-for-Bitcoin swaps for accredited investors, offering a novel approach to scaling corporate Bitcoin exposure.
Another notable player is MetaPlanet in Japan, which has accumulated over $700 million in Bitcoin, reflecting the broadening international interest in Bitcoin as a treasury asset. Similarly, 21 Capital is poised to become the second-largest corporate holder with 42,000 Bitcoin, while in Europe, the Blockchain Group has set an ambitious target to acquire up to 260,000 Bitcoin by 2033, aiming for $20 billion in holdings.
Michael Saylor’s Strategy is leading the institutional charge and has established itself as the benchmark for corporate Bitcoin accumulation. As of May 2025, Strategy holds 555,450 Bitcoin, representing approximately 2.6% of Bitcoin’s total fixed supply, making it the largest public holder of Bitcoin globally. Year-to-date, the company has added 109,050 Bitcoin at an average purchase price of roughly $94,000, bringing the total market value of its Bitcoin position to approximately $55 billion.
How can Strategy’s Bitcoin balance sheet change market dynamics?
At the beginning of the year, Strategy held around 386,700 Bitcoin. Now, it has increased its holdings to over 550,000 Bitcoin. This imbalance underscores increasing structural pressure on Bitcoin’s supply. As a scarce and finite asset, such aggressive accumulation by a single entity signals potential supply-side constraints, particularly as more institutions seek long-term allocations.
Figure 2: The Effect of Strategy’s Acquisitions on Bitcoin’s Supply in 2025
Source: 21Shares, BitcoinTreasuries, Data as of May 7, 2025.
Beyond the sheer size of Strategy’s Bitcoin treasury, its growth also speaks to the company’s consistency and discipline. Since August 2020, Strategy has steadily added to its holdings every quarter, signaling a long-term, methodical strategy rather than short-term opportunism.
Confident as ever, Strategy maintains that its outstanding convertible notes and preferred equity are significantly overcollateralized and is actively urging credit rating agencies to adopt a framework that recognizes Bitcoin as a viable, high-grade reserve asset. If realized, this framework could catalyze the development of a Bitcoin-native bond market, one in which corporations raise debt capital directly against Bitcoin reserves, while institutional investors gain exposure to a new, collateralized digital asset class.
More players join the Bitcoin club
Strategy’s proposal is rippling through the corporate world, hinting at the next phase of Bitcoin adoption: a Bitcoin-native financial market. Riot Capital and Coinbase have partnered to let companies use Bitcoin as collateral for working capital, turning idle reserves into active assets. Strike has rolled out Bitcoin-backed loans, while Europe’s Relai now lets users spend fiat without selling their Bitcoin. These early moves, echoing Strategy’s vision, mark a shift toward integrating Bitcoin directly into corporate finance, expanding its role as a macro asset, and attracting a new wave of institutional players.
By Maximiliaan Michielsen
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
Solana is a high-performance blockchain built for speed, scale, and real-world usability, making it one of the most compelling platforms for cross-border payments and beyond.
With transaction fees as low as $0.0025 and sub-second finality, Solana enables frictionless transfers of any size, be it $1 or $100 million, at a fraction of the cost and time of traditional systems. Its performance has attracted global payment leaders like Visa, Stripe, and Shopify, all of which integrate Solana’s infrastructure to power stablecoin payments, institutional settlements, and retail checkouts.
Solana’s use cases extend far beyond payments. As we’ll explore, it’s become the builder’s chain of choice for decentralized finance (DeFi), AI agents, real-time apps, and physical infrastructure networks, underpinning a new internet where cost and speed are no longer trade-offs.
Cross-border payments
Stablecoin adoption on Solana has surged nearly 6x in under a year, skyrocketing from $2.16 billion in early 2024 to over $12 billion by early 2025. This explosive growth is fueled by Solana’s ability to process near-instant transactions at ultra-low costs, with average transaction fees hovering around $0.0025, often at a fraction of a cent, even during peak network activity. Whether moving $1 or $100 million, transaction fees remain negligible, making Solana the go-to blockchain for cross-border payments, institutional transfers, and everyday transactions.
User-friendly experience
To complement the growing adoption across both traditional institutions and crypto-native sectors, Solana is prioritizing user experience through intuitive design and technical advancements. By making blockchain interactions as seamless as Web2 applications, Solana is eliminating barriers to entry and driving greater accessibility for new users.
For starters, Solana Blinks enables seamless blockchain transactions through QR code scans on social media, allowing users to engage effortlessly in a familiar setting, without even realizing they’re interacting with blockchain technology. Meanwhile, Solana Pay lets merchants cover transaction fees for customers, removing the need to hold SOL and making digital payments effortless. As a final example, the Solana Saga & Sleeker smartphones integrate Web3 functionality directly into handheld devices, bringing blockchain technology quite literally to users’ fingertips.
By reducing friction and enhancing usability, Solana is setting the gold standard for mainstream crypto adoption, which is clearly accelerating across the vast ecosystem it boasts, which will now be explored in more detail.
The builder’s blockchain
Solana is emerging as the top blockchain for innovative tech, with an 83% growth in developers in 2024. This growth is fueling innovation in AI and decentralized infrastructure industries that rely on fast, low-cost networks for real-time interactions. For the first time ever, Ethereum has been surpassed in new developer growth, with Solana’s developer base expanding 83% in the past year.
As of writing, the Solana network has recorded 365 billion transactions through a vibrant ecosystem composed of more than 400 applications in various sectors, mainly decentralized financial services, and crypto art and games. The use of Rust over EVM-compatible Solidity as the core programming language has been identified as one of the key constraints for developers building on Solana.
To facilitate ecosystem growth, the Solana Foundation hosts annual hackathons. For instance, the “Radar” hackathon took place in November 2024, encouraging participants to build the next breakout crypto startup. There were over 10,00 participants from over 120 countries, with 1,359 project submissions competing for a grand prize of $50,000 USDC, demonstrating the interest and strength of the growing community and continued developer support. As a result, Solana became the #1 ecosystem for new developers in 2024, overtaking Ethereum, which had occupied this place since 2016, according to Developer Report.
Rapid adoption across industries
Solana is rapidly becoming the go-to blockchain for emerging sectors, largely driven by an unprecedented talent influx and high-performance infrastructure.
This wave of builders is fueling breakthrough innovations in DePIN and AI, two sectors that demand high-speed, low-cost networks for frequent real-time interactions.
The migration of Render Network from Ethereum underscores this shift, as the project now leverages Solana’s architecture for decentralized, GPU-powered rendering services. Meanwhile, more than half of all AI agents are now launching on Solana, thanks to frameworks like Eliza and ARC, which simplify the deployment of AI-powered agents for real-time automation and decision-making.
Notably, Eliza has attracted many developers, with its open-source code on GitHub being used 4,200 times. The rapid surge in AI agents earlier this year highlights how these industries are driving significant on-chain activity, further solidifying Solana as the platform of choice for experimental and high-growth use cases. As innovation accelerates, Solana’s scalability and developer momentum are setting the foundation for the next wave of decentralized applications, which will be explored further as we break down Solana’s ecosystem.
Decentralized Physical Infrastructure Networks (DePIN) represent an emerging crypto subsector focused on outsourcing and optimizing physical resources through decentralized systems. Solana powers DePINs like Helium (broadband), Hivemapper (mapping), and Render (3D rendering), which demand high-speed, low-cost transactions at scale. Solana’s fast and efficient blockchain provides the necessary infrastructure for these applications to operate smoothly and cost-effectively.
Over the past years, Solana has garnered partnerships with legacy players like PayPal and Visa. In 2024, Solana forged integrations with Shopify and Stripe on the retail side and Franklin & Templeton and Hamilton Lane on the institutional side. Solana must address network reliability issues to deepen its integration with traditional finance, especially as its network experienced downtime once in 2024 and multiple times over the past four years. Coming soon on Solana’s mainnet, the Firedancer validator client is a solution developed by Jump Crypto, positioned to reduce outages. On testnet, Firedancer was capable of processing over 1 million TPS and is anticipated to enhance network reliability, solidifying Solana’s role as a top solution.
Research Newsletter
Each week the 21Shares Research team will publish our data-driven insights into the crypto asset world through this newsletter. Please direct any comments, questions, and words of feedback to research@21shares.com
Disclaimer
The information provided does not constitute a prospectus or other offering material and does not contain or constitute an offer to sell or a solicitation of any offer to buy securities in any jurisdiction. Some of the information published herein may contain forward-looking statements. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those in the forward-looking statements as a result of various factors. The information contained herein may not be considered as economic, legal, tax or other advice and users are cautioned to base investment decisions or other decisions solely on the content hereof.
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