Why is Solana (SOL) Price Up Today?
Solana’s native token, SOL, saw a substantial increase of 17% between July 7 and July 9, rebounding to $140. This rise recovered the losses from the previous three days, which had bottomed out at $121. Currently, Solana is trading at $141, marking a 3% gain in the last 24 hours. This positive momentum has traders wondering if SOL could surpass the $200 mark again.
The Role of a Potential Spot Solana ETF
The recent surge in SOL’s price can be attributed to heightened trading activity after VanEck and 21Shares filed applications with the US Securities and Exchange Commission (SEC) for a spot Solana exchange-traded fund (ETF). The filings, confirmed by the Chicago Board Options Exchange (Cboe) on July 8, 2024, represent a significant advancement in the realm of crypto investment products.
The Cboe has requested the SEC’s approval to list these ETF products. Rob Marrocco, Cboe Global Market’s global head of ETP listings, highlighted this development: “Following our success in listing the first US spot Bitcoin ETFs and obtaining SEC approval for spot Ether ETFs, we are now addressing the rising investor interest in Solana, the third most traded cryptocurrency after Bitcoin and Ether.”
Once the SEC acknowledges the filing, it has 240 days to decide on the ETFs, which would be backed by SOL. Despite the optimism around a spot Solana ETF, Bloomberg Senior ETF analyst Eric Balchunas pointed out that the outcome may depend on the upcoming US presidential elections in November.
A June 27 research report by GSR Markets predicted that the approval and launch of spot Solana ETFs in the US could potentially increase SOL’s price ninefold.
Enhanced On-Chain Activity Supports SOL’s Growth
Solana’s network activity and scaling capabilities are also crucial to its performance. According to DappRadar, transaction volume among Solana’s top decentralized applications (DApps) has increased by 7.27% over the past 24 hours, driven by activity in Raydium, Jupiter exchange, Sol Incinerator, and Pumf.fun. Solana’s 24-hour DApp volume has jumped by 76% to $103.63 million, with unique active wallets (UAW) and NFT volume rising by 1.71% and 27.5%, respectively, in the same period.
The recent price increase in SOL is also linked to a rise in total value locked (TVL) within the network, indicating higher user engagement. Data from DefiLlama shows that Solana’s TVL has grown by 4.5% in the last 24 hours, from $4.22 billion to $4.405 billion, signaling increased interaction from users and developers with the network.
Conclusion
The analysis of Solana’s DApps and on-chain activity underpins the current strength of SOL’s price and suggests the potential for further increases. However, this article does not offer investment advice or recommendations. Every investment and trading decision carries risk, and readers should perform their own research before making any decisions.
