Solana Price Surges Amid Anticipation of SEC-Approved ETF and Robust Network Growth

Solana's price rose today due to increased investor enthusiasm surrounding a potential Solana ETF, which has bolstered trader sentiment toward the altcoin. 

Source: coinmuhendisi.com

Between July 7 and July 9, Solana's native token rose by 17%, reclaiming the $140 level and recovering from recent lows around $121. As of the latest update, Solana is trading at $141, marking a 3% increase over the past 24 hours. This uptrend has sparked speculation among traders about the possibility of SOL surpassing the $200 mark once again.

Potential Solana Spot ETF Could Drive SOL Prices Even Higher

Trading activity for SOL surged in the last 24 hours following submissions by VanEck and 21Shares to the US Securities and Exchange Commission (SEC) for a spot Solana exchange-traded fund (ETF). These filings, confirmed by the Chicago Board Options Exchange (Cboe) on July 8, 2024, mark a significant step forward in the development of crypto-based investment products. Cboe submitted 19b 4 filings to the SEC, requesting to list these ETF products pending regulatory approval. According to Rob Marrocco, global head of ETP listings at Cboe Global Market, once the SEC acknowledges receipt of the filing, a 240 day window opens for the regulator to make a decision on these products, which would be backed by SOL.

These developments have raised trader expectations regarding the potential approval of a spot Solana ETF. However, Bloomberg Senior ETF analyst Eric Balchunas noted that the approval of SOL ETFs could hinge on the outcome of the US presidential elections in November. In a June 27 research report, GSR Markets, a crypto market maker, predicted that the approval and subsequent launch of spot Solana ETFs in the United States could potentially increase the price of SOL by a factor of nine.

SOL's Recovery Is Underpinned By Increasing On-Chain Activity

Solana's network activity and scaling solutions are key drivers behind its recent performance surge. According to data from DappRadar, transaction volumes among Solana DApps have increased by 76%  to reach $103.63 million over the last 24 hours. Concurrently, the total unique active wallets (UAW) have seen a 1.71% uptick, and the NFT volume has surged by 27.5% over the same period. SOL's recent price uptick correlates with a rise in total value locked (TVL), which has climbed by 4.5% within the past 24 hours, reaching $4.405 billion, indicating heightened engagement from users and developers alike. This growth has been particularly fueled by platforms like Raydium, Jupiter exchange, Sol Incinerator, and Pumf.fun.

Insights from DefiLlama underscore this trend, highlighting increased TVL on the Solana network as a reflection of growing network utilization. The robust performance of Solana's DApps and escalating on-chain activity validate SOL's current price strength and suggest the potential for further gains in the near term.

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.