In 2022, Solana’s price plummeted to $8 following the FTX incidents, which drew considerable attention to the cryptocurrency. Many believed Solana was finished, but the price rebounded, reaching above $100 by the end of 2023. The upward trend did not stop there; during the meme coin boom in March, Solana’s price surged past $200, hinting at previous all-time highs. So, what developments are propelling Solana now?
ETF Application Sparks Interest
Recently, Solana (SOL) garnered significant attention due to an ETF application in Canada. This move was further amplified when VanEck submitted a similar application to the Securities and Exchange Commission (SEC), causing considerable excitement in the market.
The ongoing rise in Bitcoin also positively influenced other altcoins, leading to modest gains for bullish investors. The overall cryptocurrency market value climbed to $2.29 trillion, marking a 0.67% increase, while Solana’s price saw an impressive surge of over 8%.
How is Solana’s Price Performing?
Despite the momentum from the ETF news, the broader market experienced a pullback. Bitcoin’s price, which had risen, fell back to the $61,500 level. In the past 24 hours, Solana’s price exceeded $150 but slightly retracted. Currently, Solana is trading at $148.7, following a rise of more than 9%, with a weekly gain surpassing 10%. Despite the recent surge, Solana’s price is still down by 13% over the past 30 days.
Key Insights for Investors
The market cap and trading volume of Solana have shown significant growth, indicating strong interest from investors. Here are some actionable insights:
- Solana’s market cap has risen to $68.5 billion, with anticipation about when it will surpass the $100 billion mark.
- The 24-hour trading volume has increased by 52%, reaching $2.73 billion, reflecting heightened investor interest.
- Institutional interest in SOL remains high, suggesting possible future ETF applications.
Impact of ETFs on the Market
ETFs have become crucial for those contemplating entry into the crypto market. Three months after Spot Bitcoin ETFs began trading on January 10, Bitcoin’s price achieved an all-time high of $73,000 before the halving. Attention is now shifting to the spot Ethereum ETF, expected to be approved in early July, which could significantly impact Ethereum’s price.
Similar effects are anticipated for Solana, given the strong institutional interest. Apart from BTC, ETH, and SOL, there are discussions about a potential XRP ETF in the future.