Why did Solana (SOL) price increase today?
Solana Native Token (SOL) surged 17% between July 7 and July 9, reclaiming the $140 level. This recovery recovered all losses from the previous three days below $121.
At the time of publication, Solana was trading at $141, up 3% in the past 24 hours. This has led traders to think that SOL's bullish trend could push the price above the $200 mark again.
Spot Solana ETF can increase the price of SOL
VanEck and 21Shares filed a Solana exchange-traded fund (ETF) application with the US Securities and Exchange Commission in the last 24 hours.
This development was confirmed by the Chicago Board Options Exchange (Cboe) on July 8, 2024, which marks another step in the evolution of crypto-based investment products.
The exchange has filed a pair of 19b-4 documents with the SEC, asking them to list these products if and when the regulator approves them.
Commenting on the development, Rob Marrocco, head of ETP listings at Cboe Global Market, said;
“After successfully listing the first U.S. spot Bitcoin ETF on our exchange and receiving SEC approval to list Ether ETFs, we are now addressing growing investor interest in Solana – the third most active exchange after Bitcoin and Ether.”
Once the SEC acknowledges acceptance of the filing, a 240-day window will open in which the regulator is required to make a decision on the products, which will be supported by the (SOL).
While these developments have raised hopes for the trader's Solana ETF position, Bloomberg Senior ETF Analyst Eric Balchunas said the fate of the SOL ETF will depend on the outcome of the US presidential election in November.
In a June 27 research report, crypto market maker GSR Markets predicted that the approval and subsequent launch of Spot Solana ETFs in the United States could increase the price of SOL by nine times.
Related: Analyst recommends Solana ETF deadline for mid-March after new filings
Increased onchain activity supports SOL recovery
Solana's network mobility and measurement solutions contribute to its performance. Data from Dapradar shows a 7.27% increase in transaction volume among the top Solana DApps in the last 24 hours.
Currently, Solana's 24-hour DApp volume has increased by 76% to $103.63 million, while the total number of unique active wallets (UAW) and NFT have increased by 1.71% and 27.5% in the same period.
SOL's recent price increase follows an increase in Total Value Locked (TVL) as more users connect to the network, contributing to increased speeds.
According to data from Defillama, TVL on the Solana network has increased by 4.5% in the last 24 hours, from $4.22 billion to $4.405 billion, which means that users and developers are connecting more with the network.
Analysis of Solana's DApps and onchain activity confirms the strength of SOL's value at its current level and increases the chances of further increases in the near future.
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.
