Markets
Solana Up 35% This Month. Four Experts On Where It Goes Next – DL News
- Solana is trading above $190.
- Its 35% increase over the past month is better than all other tokens in the top 20 in terms of total value.
- According to analysts, institutional interest and excitement among retailers are behind this increase.
As usual, cryptocurrency markets were mixed in July.
Over the past 30 days, the value of Bitcoin has increased by 14%, reaching around $69,500.
And Ethereum remained stable at around $3,400, contrary to predictions that launch Spot Ethereum exchange-traded funds would stimulate demand.
However, Solana has surged, jumping nearly 35% in the past month to above $190.
Its performance outperforms all other cryptocurrencies listed in the top 20 in terms of total value, including Ripple’s XRP, Binance’s cryptocurrency, and Tron.
What made Solana a “moon”? And can it keep up its torrid pace?
Solana price for the last 30 days. Data: CoinGecko
‘Institutional interest’
Ajay Dhingra, head of research and analytics at Unizen, a DeFi protocol that aggregates prices from other exchanges, said DL News that Solana’s recent recovery is due to “strong institutional interest”.
He pointed to Hamilton Lane launch of a private credit fund on blockchains and also of VanEck archiving for a Solana ETF as drivers of the cryptocurrency’s recent growth.
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Tristan Frizza, founder of Zeta Markets, a decentralized exchange, also referred to the documentation presented by VanEck.
“The recent launch of the Ethereum ETF could create a ‘buy the rumor, sell the news’ event, potentially increasing anticipation for the Solana ETF,” he said. DL News.
Retailer Buzz
According to analysts, Solana has not only attracted the attention of institutions, but has also won over the public.
Frizza said the token’s superior performance versus Ethereum and Bitcoin stems in part from its centrality to the recent memecoin craze.
That’s something Athanasios Soutos, head of the DeFi ecosystem at Keyrock, a cryptocurrency market maker and OTC desk, also said. DL News.
According to data from DefiLlama, in the last 24 hours the total volume of funds transferred on decentralized exchanges on Solana has exceeded the equivalent volumes on Ethereum.
“While a significant portion of this is driven by speculative memecoins, it demonstrates Solana’s capabilities as a blockchain,” Soutos said. DL News.
Bears and Bulls
Despite the institutional fervor over Solana, Unizen’s Dhingra says any price action attributable to the hype surrounding ETFs could be short-lived.
Under President Joe Biden, the U.S. Securities and Commodities Commission has cracked down on some of the major players in the cryptocurrency industry.
“The current SEC administration is unlikely to approve a Solana ETF, so we could see a reversal soon,” Dhingra said, referring to Solana’s recent price rally.
Eugene Cheung, institutional head of Bybit, also expressed skepticism about the possibility of an ETF being launched in the near future.
“The institutions I speak to are assigning a low probability of it coming to market in the next 12 months,” he said. “That could change with a change in the regulatory regime or if other large players also apply for the Solana ETF.”
However, Keyrock’s Soutos was more optimistic.
If Solana continues to attract users and a new technical update If it goes smoothly, “it has the potential to reach Ethereum’s current market cap of around $400 billion,” he said.
Ben Weiss is a Dubai-based correspondent at DL NewsHave a suggestion? Email him at bweiss@dlnews.com.