Solana poised for gains fueled by US ETFs and retail adoption – Analyst

Solana is set for another year of significant growth in 2025, with increased interest from retail investors and anticipation of a US-based Solana exchange-traded fund (ETF).

Solana (SOL) fell below the key $200 psychological mark on Jan. 9 after posting a weekly decline of more than 7%, according to data from Cointelegraph Markets Pro.

Despite the current correction, Solana is poised to make a significant financial return for one year, which is expected mainly from gains by retail investors, Nansen research analyst Nikolai Sondergaard told Cointelegraph in an exclusive interview at the Emergence Prague 2024 event.

“[Solana’s appeal] It is the expected profit function. Solana looks very cheap. If you're looking at a unit, you think this is cheaper to buy,” Søndergaard said.

New retail investors often make the mistake of using a cryptocurrency's unit price to determine its value and future potential, which is highly dependent on the coin's market capitalization.

This misconception often makes tokens like Solana attractive to retailers, as the price tag allows them to acquire the entire coin for around $200, while investors buy only a fraction of Bitcoin (BTC) or Ether (ETH).

However, a token's market capitalization can provide more accurate information on the total value of the token, compared to other cryptocurrencies, and its price volatility.

More and more analysts expect Solana's price to exceed $400 based on historical chart patterns and enthusiasm for the first U.S.-based Solana ETF.

Related: 3 crypto predictions going into 2025: SOL ETFs, AI trading, new risks

SOL ETFs are expected to be approved by the end of January 2025

The crypto industry could see the first Solana ETF certifications as late as January 20, shortly after President-elect Donald Trump's inauguration on January 20.

At least five companies are vying for the Solana ETF space, including asset management giants VanEck, Greyscale, 21Shares, Bitwise and Canary Capital.

Greyscale's Solana ETF application deadline is Jan. 23, while the other four applicants expect an initial decision on Jan. 25, 45 days after the SEC receives the ETF's application for review in November 2024.

The analyst explained that the US Solana ETF could provide greater access to traditional investors who do not have an account with a centralized exchange (CEX) and want exposure to SOL.

Interview by Nansen Nikolaj Søndergaard with Cointelegraph's Zoltan Vardai

While it's highly likely that Solana's ETF will be approved in 2025, the timeline is the main question for crypto investors, says Nansen Søndergaard.

“The question is if it will take many iterations before it happens similar to what happened with BTC and ETH. But I think it's definitely happening in 2025.”

Related: Bitcoin Price Drops to $92.5K on Fed Interest Rate Concerns: Analyst

Brazil's first Solana ETF was approved on August 7, setting a precedent for other global jurisdictions.

Solana rose above $230 on December 11, as traders' enthusiasm for the SOL ETF increased, with Bitwise setting a $750 price target for Solana as of 10:08 am UTC.

Magazine: Ether Could ‘Struggle' in 2025, SOL ETF Chances Rise, and More: Hodler's Digest, December 29 – January 4

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