Solana’s Value Skyrockets by 12% Following VanEck SOL ETF Application
Tanzeel Akhtar
Last updated:
July 2, 2024, 00:34 EDT
|
2 min read
In the past week, Solana (SOL) has experienced a remarkable 12% surge, a surge that was prompted by VanEck’s recent submission for a Solana exchange-traded fund (ETF).
VanEck, renowned for being a trailblazer in Bitcoin ETFs, is looking to provide investors with direct exposure to SOL, igniting a renewed interest and substantial price increases in the asset.
Ryan Lee, the chief analyst at Bitget Research, stated that data indicates that on June 27, the first Solana ETF application from VanEck sparked a collective upswing in the SOL ecosystem, with the entire sector experiencing an almost 9% increase in 24 hours and a 30% rise in the number of traders.
As a result of Solana’s growth, several Solana Memecoins also saw significant gains, including BOME, which saw a 15% increase in value along with an 80% rise in traders, and WEN, which saw a 15.5% increase in value alongside a 25% rise in traders.
Solana ETPs and ETNs Already Available in Europe
In Europe, there are already several Solana exchange-traded products actively trading on exchanges. CoinShares offers a Coinshares Physical Staked Solana ETN that tracks the Solana index, as well as the 21Shares Solana Staking ETP.
In March, Figment Europe Ltd, a provider of institutional staking infrastructure, and Apex Group listed the “Figment Solana Plus Staking Rewards” ETP, which will be traded under the ticker “SOLF.”
SOL Poised to Become the Third Major Cryptocurrency
According to Bitget analyst Lee, if SOL is able to obtain its ETF, it may become the third major cryptocurrency after BTC and ETH, thanks to its recent growth.
“Solana’s DeFi ecosystem has expanded rapidly, with its total TVL rising from around $1.3 billion at the beginning of 2024 to approximately $4.5 billion now, marking a 346% increase,” said Lee.
Bitget Research attributes this growth to the concentrated launch of Solana ecosystem projects, such as JITO, Jupiter, Kamino, Marginfi, and Drift. “These projects have significantly enriched the Solana ecosystem, bringing more DeFi features to the Solana chain,” added Lee.
What is Solana?
Solana is a blockchain platform designed for decentralized applications (dApps) and cryptocurrency transactions.
Recognized for its speed and scalability, Solana can process over 65,000 transactions per second with minimal fees, due to its Proof of History (PoH) consensus mechanism combined with Proof of Stake (PoS). This makes it a formidable competitor to Ethereum, attracting developers and projects to its ecosystem.
The potential for a spot Solana ETF in the U.S. has heightened investor confidence, suggesting a wider acceptance of Solana in traditional financial markets. If approved, VanEck’s ETF would enable investors to gain exposure to SOL without directly purchasing the cryptocurrency, potentially leading to increased institutional interest and adoption.
This latest development underscores Solana’s growth in the cryptocurrency space.
Follow Us on Google News
