Solana experienced its most significant rally in over a month after VanEck, an exchange-traded fund (ETF) issuer, submitted a filing for a product based on the crypto. The token surged by up to 11%, marking its highest increase since late May, following the paperwork submitted to the Securities and Exchange Commission (SEC) on Thursday. VanEck aims to launch the VanEck Solana Trust, which would hold the token directly. The filing, however, did not list a ticker symbol or specify any associated fees.
VanEck’s filing aligns with a trend of new applications for ETFs focused on various cryptocurrencies. Issuers are seeking innovative ways to introduce these products, following the success of Bitcoin ETFs launched earlier this year, which attracted billions in assets. The crypto community is now keenly watching for the debut of funds based on Ether, the second-largest token. VanEck’s move underscores the growing interest in diversified crypto assets and the push for broader acceptance and integration of these assets into mainstream financial instruments.
Solana currently ranks as the fifth-largest crypto by market cap, according to CoinGecko. Data compiled by Bloomberg shows that the token gained more than 900% in 2023. Per Bloomberg, Rich Rosenblum, co-CEO of digital-asset firm GSR, highlighted Solana’s role in Web3, noting its significant utilization rather than just its price rise. Rosenblum stated,
Solana solidified its place in the ‘Big 3’ last year, not by virtue of its parabolic rise in price, but rather as the most utilized token in Web3.
Elsewhere, according to Wu Blockchain, GSR has released its ETF possibility score, evaluating various cryptocurrencies based on decentralization and demand scores. Ethereum (ETH) topped the rankings, followed by Solana (SOL), Near Protocol (NEAR), Avalanche (AVAX), Aptos (APT), Cardano (ADA), XRP, and Cosmos (ATOM).
The report highlights that if a Solana ETF is approved, its market value could potentially increase by 1.4 times in a bear market scenario and surge by up to 8.9 times during a bull market. This projection underscores the significant impact that ETF approval can have on the valuation of cryptocurrencies, particularly for those ranked high in the decentralization and demand scores.
Solana’s Market Resilience Tested at Key Support Level, Says AnalystAt the time of this report, Solana (SOL) is priced at $144, with a 24-hour trading volume of $3,313,214,754.76. This represents a 5.73% price increase in the last 24 hours and an 8.31% increase over the past seven days. Solana has a circulating supply of 460 million SOL, valuing it at a market cap of $66,645,519,515. Despite the overall decline of -2.50% in the global cryptocurrency market, Solana has outperformed with an 8.30% price increase over the past week. However, it underperformed compared to similar FTX Holdings cryptocurrencies, which rose by 11.40%.
