Solana (SOL) Surges Amid Rising ETF Anticipation and Meme Coin Boom
Summary:
Solana's (SOL) cryptocurrency has seen a 13.58% surge in the last 48 hours, increasing its trading volume by 80% to $5.5 billion. A potential exchange-traded fund (ETF) for Ether has led to heightened anticipation for other top cryptocurrencies, including Solana. If the ETF is approved, analysts suggest that Solana could be the next in line. The launch of over one million new tokens since early April has raised the prices of Sol-based meme coins and also indicates greater platform activity and adoption.
In the past two days, Solana's (SOL) native cryptocurrency has experienced a growth of over 13.58%, reaching a daily high of $188 on May 21. When looking at returns over the span of a month and three months, SOL's have been approximately 18% and 65% respectively. Accompanying this rise in price, Solana has also seen its trading volume jump by 80%, hitting $5.5 billion. As a result, its total market capitalization has surged to $80.5 billion, securing its spot as the fifth largest cryptocurrency, based on data from CoinMarketCap.
An explanation behind SOL's increase in value this year could be the impressive performance of meme coins based on Solana and the promising news updates which have boosted demand for assets deemed riskier, such as Solana.
With discussions about a potential exchange-traded fund (ETF) for Ether sparking debates, there's rising anticipation for other top cryptocurrencies, including Solana, possibly following suit. Analysts, including Matrixport's co-founder Daniel Yan, suggest that if an Ether ETF is approved, it would be wiser to invest in SOL due to its potential of being the next in line for an ETF. Echoing this thought, an analyst known as Gumshoe stated that ETF approval for Ether would favour SOL more than Ether.
The persistent belief that the SEC will green light an ETF for Ether has pushed cryptocurrency prices, SOL included.
The launch of over one million new tokens since early April has led to a noticeable rise in prices for Sol-based meme coins like Bonk (BONK), Popcat (POPCAT), and Myro (MYRO). With over 640k tokens launched on Solana, the growth in new tokens indicates more activity and adoption of the platform. An increase in tokens being released leads to a surge in transactions and use of the network, thereby raising the demand for SOL.
Despite the display of some patterns signalling a peak, SOL's market situation hints at continued growth for the layer 1 token. With SOL trading 15% below its high of $210 in mid-March, the inclination still tilts towards an upward move. The price reach of SOL could extend to $210 if it surpasses the $200 resistance, though it could also provoke profit-booking, leading to a more significant correction. However, dropping below the 50-day EMA of $154 and the 100-day EMA of $144 could indicate a bearish trend, with possible drops to $140 and $120.
NOTE: This news article doesn't provide investment advice or recommendations, investing and trading come with risks, appropriate research is highly encouraged before making a decision.
Published At
5/21/2024 10:21:13 PM
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