Solana Price Surges 12% Since VanEck Spot Solana ETF Filing: What’s Next?

Key Takeaways:

• Significant Price Surge: Solana price has increased by approximately 12% in the past week, driven by VanEck’s filing for a spot Solana ETF.
• Ripple Effect on Memecoins: The spot Solana ETF filing also boosted Solana-based memecoins like BOME and WEN, which saw significant price gains and an increase in trading activity.
• Existing Solana ETPs in Europe: Solana already has several exchange-traded products (ETPs) and exchange-traded notes (ETNs) actively trading in Europe, such as the CoinShares Physical Staked Solana ETN and the 21Shares Solana Staking ETP.
• Rapid DeFi Growth: Solana’s decentralized finance (DeFi) ecosystem has grown substantially, with total value locked (TVL) increasing from $1.3 billion at the beginning of 2024 to $4.5 billion currently, driven by key projects like JITO, Jupiter, Kamino, Marginfi, and Drift.
• Potential Major Crypto Asset: Analysts believe that Solana could become the third major crypto after Bitcoin and Ethereum if the spot Solana ETF is approved, highlighting its speed, scalability, and growing adoption.

Solana price has experienced a significant uptick, rising approximately 12% over the past week following VanEck’s recent filing for a spot Solana ETF. This move by VanEck, a trailblazer in the Bitcoin ETF space, has generated substantial interest and contributed to the notable price gains of SOL.

VanEck’s Ambitious Spot Solana ETF Filing

VanEck, renowned for its pioneering role in Bitcoin ETFs, has now set its sights on Solana. The firm aims to provide investors with direct exposure to SOL through a spot ETF, a move that has rekindled enthusiasm in the market. Ryan Lee, the chief analyst at Bitget Research, highlighted that the Solana ecosystem saw a collective rise on June 27, the day VanEck’s ETF application was made public. The ecosystem witnessed an almost 9% surge within 24 hours, accompanied by a 30% increase in the number of traders.

The filing didn’t just benefit SOL price but also had a ripple effect on various Solana-based memecoins. BOME, for instance, saw a 15% price increase and an 80% rise in traders. Similarly, WEN experienced a 15.5% gain with a 25% increase in traders. These gains underscore the broader impact of the ETF filing on the entire Solana ecosystem.

Read On: Solana Price Prediction

Solana ETPs and ETNs in Europe

While the US market awaits the potential approval of VanEck’s ETF, Europe has already embraced Solana-based exchange-traded products (ETPs) and exchange-traded notes (ETNs). CoinShares offers the CoinShares Physical Staked Solana ETN, tracking the Solana index, while 21Shares provides the Solana Staking ETP. Additionally, Figment Europe Ltd and Apex Group launched the “Figment Solana Plus Staking Rewards” ETP in March, trading under the ticker “SOLF.”

Solana’s Potential as a Major Crypto Asset

Bitget analyst Lee believes that Solana could become the third major crypto after Bitcoin (BTC) and Ethereum (ETH) if the ETF is approved. This optimism is backed by Solana’s rapid growth, particularly in the decentralized finance (DeFi) sector. The total value locked (TVL) in Solana’s DeFi ecosystem has surged from approximately $1.3 billion at the start of 2024 to around $4.5 billion currently, marking an increase of about 346%.

The impressive growth of Solana’s DeFi ecosystem is attributed to the launch of several high-impact projects within the ecosystem. Notable projects include JITO, Jupiter, Kamino, Marginfi, and Drift, all of which have significantly enriched the Solana ecosystem by introducing a variety of DeFi features.

Solana is a blockchain platform designed for decentralized applications (dApps) and crypto transactions. It stands out due to its speed and scalability, capable of processing over 65,000 transactions per second with minimal fees. This efficiency is made possible by Solana’s unique Proof of History (PoH) consensus mechanism, which works in conjunction with Proof of Stake (PoS). These attributes make Solana a formidable competitor to Ethereum, drawing developers and projects to its platform.

The Prospect of a Spot Solana ETF in the US

The potential introduction of a spot Solana ETF in the US has heightened investor optimism, suggesting a broader acceptance of Solana in traditional financial markets. If approved, VanEck’s ETF would enable investors to gain exposure to SOL without the need to directly purchase the crypto. This could drive further institutional interest and adoption, marking a significant milestone for Solana.

Conclusion

The recent surge in Solana’s price following VanEck’s ETF filing highlights the growing interest in this blockchain platform. With the potential approval of the Solana ETF in the US, coupled with its rapid growth and robust ecosystem, Solana is well-positioned to become a major player in the crypto market. Investors and analysts alike are keenly watching Solana’s trajectory, anticipating further developments that could cement its status as a leading digital asset.

Source: cryptonews.com