Solana (SOL) Surges 12% Following VanEck’s ETF Application
Solana (SOL) has surged approximately 12% in the past week, driven by VanEck’s recent filing for a Solana exchange-traded fund (ETF).
VanEck’s Initiative Sparks Renewed Interest
Known for pioneering Bitcoin ETFs, VanEck aims to offer direct exposure to SOL, resulting in significant price gains and renewed investor interest.
Market Response and Memecoin Growth
On June 27, the SOL ecosystem experienced an overall increase, with the sector rising nearly 9% in 24 hours. Trading activity also surged, with a 30% increase in the number of traders.
Several Solana memecoins, including BOME and WEN, saw notable gains: BOME rose 15% with an 80% increase in traders, while WEN increased by 15.5% with a 25% rise in traders.
Solana ETPs and ETNs Already Trading in Europe
In Europe, several Solana exchange-traded products are actively traded. For instance, CoinShares offers a Physical Staked Solana ETN tracking the Solana index, and 21Shares provides a Solana Staking ETP.
In March, Figment Europe Ltd and Apex Group listed the “Figment Solana Plus Staking Rewards” ETP under the ticker “SOLF.”
SOL Poised to Become a Major Crypto Asset
According to Bitget analyst Ryan Lee, SOL could become the third major crypto asset after BTC and ETH, supported by its recent growth.
“Solana’s DeFi ecosystem has expanded rapidly, with total value locked (TVL) growing from approximately $1.3 billion at the start of 2024 to about $4.5 billion now, marking a 346% increase,” Lee noted.
Lee attributes this growth to the launch of various Solana ecosystem projects like JITO, Jupiter, Kamino, Marginfi, and Drift, which have enhanced Solana’s DeFi capabilities.
What is Solana?
Solana is a blockchain platform designed for decentralized applications (dApps) and cryptocurrency transactions. Renowned for its speed and scalability, Solana can process over 65,000 transactions per second with minimal fees, utilizing a Proof of History (PoH) consensus mechanism combined with Proof of Stake (PoS). This makes it a strong competitor to Ethereum.
The potential introduction of a Solana ETF in the U.S. underscores investor optimism, potentially broadening Solana’s acceptance in traditional financial markets. If approved, VanEck’s ETF would allow investors to gain exposure to SOL without directly owning the cryptocurrency, potentially driving further institutional interest and adoption.
This development underscores Solana’s growth trajectory within the cryptocurrency sector, poised for further advancement and innovation.
The post Solana Surges 12% Since VanEck SOL ETF Filing appeared first on Cryptonews.
