Solana (SOL) has experienced a significant price surge in recent days, climbing 17% between July 7th and 9th. This impressive rally not only recouped all the losses from the previous three days but also pushed the price back above the crucial $140 level.
Investors are filled with renewed optimism, wondering if SOL can recapture its previous glory and breach the $200 mark once again.
Spot Solana ETF Applications Fueling the Fire
A major catalyst behind SOL’s bullish run appears to be the news of potential spot Solana exchange-traded funds (ETFs). Industry leaders VanEck and 21Shares submitted applications to the US Securities and Exchange Commission (SEC) for these products. This development, confirmed by filings from the Chicago Board Options Exchange (Cboe) on July 8th, marks a significant step towards expanding crypto-based investment options.
Cboe, having successfully listed the first US spot Bitcoin ETFs and secured approval for spot Ether ETFs, is now catering to the growing demand for Solana, the third most actively traded cryptocurrency after Bitcoin and Ether.
The SEC has a 240-day window to make a decision on these proposed SOL ETFs once they acknowledge receipt of the filing. While this news has instilled hope in traders, Bloomberg analyst Eric Balchunas suggests the fate of these ETFs might hinge on the outcome of the US presidential elections in November.
GSR Markets Predicts Potential Ninefold Increase
A June 27th report from crypto market maker GSR Markets adds fuel to the fire. They predict that the approval and subsequent launch of spot Solana ETFs could potentially propel the price of SOL by a staggering ninefold.
Solana Network Activity Remains Strong
Beyond the ETF hype, Solana’s strong network activity and robust scaling solutions continue to contribute to its positive performance. DappRadar data reveals a 7.27% increase in transaction volume among top Solana DApps over the past 24 hours. This surge is fueled by increased activity on platforms like Raydium, Jupiter exchange, Sol Incinerator, and Pumf.fun.
Solana Ecosystem Flourishing
Further bolstering SOL’s momentum, the total value locked (TVL) on the Solana network has also increased by 4.5% over the last 24 hours, rising from $4.22 billion to $4.405 billion (according to DefiLlama). This suggests increasing user engagement and developer activity within the Solana ecosystem.
Overall, the recent surge in Solana’s price is fueled by a confluence of factors. The potential for spot ETFs, rising network activity, and a thriving ecosystem all combine to paint a promising picture for SOL in the near future.
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.