Solana’s native token (SOL) rose 17% between July 7 and July 9, recovering to the $140 level. This recovery recovered all losses from the previous three days, when it bottomed at $121.
At the time of publication, Solana was trading at $141 and was up 3% over the last 24 hours. This left traders wondering if the bullish trend in SOL could push the price back above $200.
Spot Solana ETF Could Drive SOL Prices Higher
Trading activity in SOL has surged over the past 24 hours as VanEck and 21Shares filed with the U.S. Securities and Exchange Commission for a Solana exchange-traded fund (ETF).
This development was confirmed in a filing with the Chicago Board Options Exchange (Cboe) on July 8, 2024, and marks another step in the evolution of cryptocurrency-based investment products.
The exchange filed two 19b-4 documents with the SEC, requesting that the regulator list these products if approved.
Rob Marrocco, global head of ETP listings at Cboe Global Markets, commented on the development:
“After successfully listing the first U.S. spot Bitcoin ETF on our exchange and receiving SEC approval for our rules filing to list a spot Ether ETF, we are now addressing growing investor interest in Solana, the third most actively traded cryptocurrency behind Bitcoin and Ether.”
Once the SEC confirms receipt of the report, the regulator has 240 days to make a decision on the product based on the (SOL).
These developments have traders excited about the Solana ETF, but Bloomberg’s chief ETF analyst, Eric Balchunas, said the fate of the SOL ETF hinges on the outcome of the U.S. presidential election in November.
In a June 27 research report, cryptocurrency market maker GSR Markets predicted that the price of SOL could increase by up to nine times if a physical Solana ETF is approved and launched in the United States.
Related: Analysts predict Solana ETF closing date in mid-March after new filing
SOL recovery supported by increased on-chain activity
Solana’s network activity and scaling solutions are contributing to the performance. According to data from DappRadar, trading volumes on Solana’s top DApps increased by 7.27% in the last 24 hours, driven by increases from Raydium, Jupiter Exchange, Sol Incinerator, and Pumf.fun.
Solana’s 24-hour DApp volume has now increased by 76% to $103.63 million, while total unique active wallets (UAW) and NFT volume have increased by 1.71% and 27.5%, respectively, over the same period.
The recent price increase of SOL is due to the increase in Total Value Locked (TVL) as more users join the network, which has contributed to the upward trend.
According to data from DefiLlama, the TVL on the Solana network has increased by 4.5% in the last 24 hours, from $4.22 billion to $4.45 billion. This shows that users and developers are interacting more with the network.
Analysis of Solana’s DApps and on-chain activity demonstrates that the current price of SOL is strong and is likely to rise further in the near future.
This article does not contain any investment advice or recommendations. All investment and trading moves involve risk, and readers should conduct their own research when making decisions.