Solana ETF Hopes, Rising Fundamentals Are Driving SOL Prices Higher, Traders Say

As a seasoned cryptocurrency analyst with over a decade of experience in the industry, I have witnessed the ebb and flow of various digital assets. Solana’s recent surge in performance has caught my attention due to its impressive transactional activity and growing expectations of an exchange-traded fund (ETF) product.

As an analyst, I’ve noticed that heightened transaction volume and optimistic anticipation regarding the potential launch of a Solana-based exchange-traded fund (ETF) could be significant factors driving its recent market success. Market experts I’ve spoken with at CoinDesk have shared this perspective.

According to DefiLlama’s data, the TVL of tokens on Solana has experienced a significant surge, growing by more than 25% within the last month and surpassing the $5.28 billion threshold, a figure last reached in April 2022. The network has consistently generated at least $1.5 million daily since June, and over the past week, it has recorded impressive on-chain trading volumes exceeding $2 billion daily.

As a researcher studying the cryptocurrency market, I’ve noticed that one of Solana’s primary attractions for traders lies in its swift transaction settlement times and affordable fees. This feature has fueled numerous meme coin trading crazes throughout the past year.

Compared to Ethereum, the blockchain with the largest total value locked at approximately $60 billion, has lower trading volumes of around $1.7 billion, but boasts significantly higher transaction fees amounting to roughly $3 million. This is due to Ethereum’s more expensive user experience.

“The recent price surge is attributed to the overall market mood brightening and heightened chances that this cryptocurrency and its related tokens won’t be classified as securities by the Trump administration,” he explained, alluding to Donald Trump’s pro-crypto stance during his presidential campaign speeches prior to the election.

“Palley commented that the imminent launch of an Ethereum ETF is beneficial, and it seems likely that Solana could be the next cryptocurrency to receive such an approval. Given its modest market cap and impressive price trend, this development would significantly boost Solana’s value.”

Around the beginning of July, Cboe made applications to the Securities and Exchange Commission (SEC) for listing the proposed spot Solana ETFs from VanEck and 21Shares. These proposals had originally been submitted to the SEC towards the end of June.