Markets
July Could Push Solana to Third-Largest Cryptocurrency by Market Cap, Says Zeta Markets Founder
Key points
- Solana’s market cap growth is fueled by recent ETF announcements.
- Tristan Frizza predicts a strong market for Solana in the coming months.
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Solana (SOL) has grown by 35% in 2024 and is currently the fifth largest cryptocurrency by market capitalization. Last week, asset management firm VanEck filed first spot SOL exchange-traded fund (ETF) in the United States, and the movement was followed quickly by 21Shares. This news was enough to make SOL one of the best-performing cryptocurrencies of the last seven days among the 20 largest by market cap.
Tristan Frizza, founder of decentralized exchange Zeta Markets, sees a favorable July for Solana and the cryptocurrency market as a whole. “Despite recent market fluctuations, overall macroeconomic conditions for cryptocurrency appear strong and we expect a positive trend to materialize in the coming months,” he shared with Crypto Briefing.
Frizza points out that Bitcoin’s dominance has fallen by more than 5% in recent days, from 52.8% on June 25 to around 50% at the time of writing, a move that usually encourages market diversification, prompting investors to explore other digital assets.
Therefore, in this favorable landscape, the founder of Zeta Markets stated that Solana is poised to become the third largest cryptocurrency by market cap thanks to its “unmatched ability to handle high transaction volumes with low fees, real-world use cases, and an extremely active ecosystem.”
“It is an ideal environment for both retail and institutional investors, especially after VanEck’s request for the first Solana ETF. This milestone clearly points to SOL as the next ETF candidate after BTC and ETH. It also opens up the possibility that SOL be classified as a commodity,” he added.
While it may take some time for a spot SOL ETF to be approved, it reinforces a positive outlook for the Solana ecosystem, which will “undoubtedly” continue to drive more interest and usage. “Overall, the potential for more crypto-friendly administrations could be a tailwind for the market,” Frizza concluded.
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