Solana Surges 17% Amid ETF Hopes & Network Growth

Solana’s native token SOL jumped 17% from July 7 to July 9, reaching $142. This quick rise erased the losses from the previous three days when SOL had dropped to $121. SOL trades at $141, up 3% in just 24 hours. This strong comeback has traders wondering if SOL can break past $200 soon.

SOL trading picked up steam after news broke about potential spot Solana ETFs. VanEck and 21Shares have applied to the SEC for these ETFs. The Chicago Board Options Exchange (Cboe) confirmed this on July 8, 2024, by filing two critical documents.

Rob Marrocco from Cboe Global Markets explained, “We’re now looking at the growing interest in Solana. It’s the third most traded crypto after Bitcoin and Ethereum.” Once the SEC acknowledges these filings, they have 240 days to decide.

But there’s a catch. Bloomberg analyst Eric Balchunas thinks the fate of SOL ETFs depends on who wins the US presidential election in November. Despite this uncertainty, some are very optimistic. GSR Markets predicts that if the US approves a spot Solana ETF, SOL’s price could shoot up to nine times its current value.

Source: Eric Balchunas

Network Activity Backs Solana Growth

Solana’s network is buzzing with activity, supporting its price rise. DappRadar reports a 7.27% increase in transactions on top Solana apps in just one day—popular apps like Raydium, Jupiter exchange, Sol Incinerator, and Pumf. Fun is leading this growth.

Source: DappRadar

The numbers are impressive. In 24 hours, Solana’s app volume rocketed 76% to $103.63 million. The number of active wallets grew by 1.71%, and NFT trading volume jumped 27.5%.

Another key metric, total value locked (TVL), shows Solana’s strength. DefiLlama reports that Solana’s TVL increased 4.5% daily, from $4.22 billion to $4.405 billion. This means more people are using Solana’s network and trusting it with their funds.

Source: DefiLlama

What This Means for SOL’s Future

All this activity on Solana’s network backs up SOL’s current price. It also hints that SOL might climb even higher soon. The mix of potential ETFs and growing network use creates a positive outlook for SOL.

Traders and investors are watching SOL closely. They’re eager to see if it can maintain this momentum and push past $200. The next few weeks will be crucial for SOL. If network activity stays high and ETF news remains positive, SOL could be in for more gains.

However, it’s important to remember that crypto markets can be unpredictable. While things look good for SOL now, traders should always be cautious and do their research before making decisions.

In conclusion, Solana’s recent price jump, backed by solid network growth and exciting ETF prospects, has put SOL in the spotlight. SOL stands poised for potentially more significant moves as the crypto world watches.

Related Reading | XRP Battles To Hold $0.40 Amid Market Turmoil & Whale Moves

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

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