Cryptocurrency Opinion and Analysis

Why is Solana (SOL) price up today?

2024.07.09 17:51

Solana’s native token (SOL) increased by 17% between July 7 and July 9, reclaiming the $140 level. This recovery recouped all the losses from the previous three days, which had bottomed at $121.

At the time of publication, Solana was trading at $141, up 3% over the last 24 hours. This has made traders wonder whether SOL’s bullish trend could push its price above the $200 mark again.

Why is Solana (SOL) price up today?SOL/USD daily chart. Source: TradingView

A spot Solana ETF could boost SOL price higher

SOL’s trading activity surged over the last 24 hours as VanEck and 21Shares submitted applications to the US Securities and Exchange Commission for a spot Solana exchange-traded fund (ETF).

This development was confirmed by filings from the Chicago Board Options Exchange (Cboe) on July 8, 2024, marking another step in the evolution of crypto-based investment products.

The exchange submitted a pair of 19b-4 filings with the SEC, asking to list these products if and when the regulator approves them.

Commenting on the development, Rob Marrocco, global head of ETP listings at Cboe Global Market, said,

“After successfully listing the first US spot Bitcoin ETFs on our exchange and securing SEC approval for our rule filings to list spot Ether ETFs, we are now addressing the increasing investor interest in Solana – the third most actively traded cryptocurrency after Bitcoin and Ether.”

Once the SEC acknowledges receipt of the filing, a window of 240 days opens in which the regulator is forced to make a decision on the products, which would be underpinned by (SOL).

While these developments have boosted trader hopes of a spot Solana ETF, Bloomberg Senior ETF analyst Eric Balchunas said that the fate of SOL ETFs depends on the outcome of the US presidential elections in November.

Why is Solana (SOL) price up today?Source: Eric Balchunas

In a June 27 research report, crypto market maker GSR Markets predicted the approval and subsequent launch of spot Solana ETFs in the United States could potentially drive up the price of SOL by a factor of nine.

Related: Analyst tips Solana ETF deadline for mid-March after new filings

Increasing onchain activity underpins SOL’s recovery

Solana’s network activity and scaling solutions contribute to its performance. Data from DappRadar shows a 7.27% increase in transaction volume among top Solana’s DApps over the last 24 hours, fueled by increases in Raydium, Jupiter exchange, Sol Incinerator and Pumf.fun.

Currently, Solana’s 24-hour DApp volume has increased by 76% to $103.63 million, while the total unique active wallets (UAW) and the NFT volume increased by 1.71% and 27.5% over the same period, respectively.

Why is Solana (SOL) price up today?Blockchains ranked by 324-hour DApp volumes. Source: DappRadar

SOL’s latest price rise also follows an increase in the total value locked (TVL) as more users engage with the network, contributing to the increasing momentum.

Data from DefiLlama reveals the TVL on the Solana network has increased by 4.5% over the last 24 hours from $4.22 billion to $4.405 billion, suggesting that users and developers are interacting more with the network.

Why is Solana (SOL) price up today?Total value locked on BNB Chain. Source: DefiLlama

Analysis of Solana’s DApps and onchain activity justifies the strength of SOL’s price at current levels and increases the odds of a further increase in the near future.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

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