The Solana (SOL) network is a thriving Web3 ecosystem, with nearly $5B in TVL, bolstered by institutional investors and retail traders.
The historical approval of eight spot Ethereum (ETH) exchange-traded funds (ETFs) in the United States has ushered in a new era for the altcoin industry, especially for the Solana (SOL) network. A period that is best described by the heightened adoption of altcoins from institutional investors triggered by clear regulatory rules from the largest global economy.
With Ethereum now perceived as a commodity rather than a security, more institutional investors will add it to their portfolios in the coming months. As a result, it is safe to assume a major altseason is on the horizon.
Moreover, Bitcoin dominance has been forming a weekly reversal pattern backed by a bearish divergence on the Relative Strength Index (RSI). Additionally, the ETH/BTC pair has rebounded strongly from the multi-year lows, around 0.046, and is currently hovering about 0.055.
Market Pundits Believe US SEC Will Soon Approve Spot Solana ETF
According to Anthony Scaramucci, founder of SkyBridge Capital and former White House Director of Communication, the next major crypto approval from the United States Securities and Exchange Commission (SEC) is the spot Solana ETF. According to Scaramucci, Solana will be a major player in this crypto bull market and has set a price target of between $750 and $1k. The legendary investor has also set a Bitcoin price target of around $250 while Ether at between $15k and $20k.
We are going to get a $SOL ETF get ready.
— Anthony Scaramucci (@Scaramucci) May 24, 2024
A similar narrative was echoed in a recent CNBC interview that highlighted how big the Solana ecosystem is to be ignored by institutional investors. In addition to the SOL-based meme coins, which are currently valued at about $8 billion and a daily traded volume of about $2.4 billion, the Solana ecosystem is a vibrant web3 ecosystem.
➮ Recently CNBC discussed spot ETFs and the fact that an ETH ETF might soon be approved—whether that happens today or next month
The main question was, "Who's next?" And CNBC mentioned $SOL
Media are already shilling a $SOL ETF, which means it has a high chance of happening… pic.twitter.com/4zuFuSzHKk
— symbiote (@cryptosymbiiote) May 23, 2024
Why SOL?
Solana is one of the most traded altcoins in the web’s ecosystem backed by a vibrant developer ecosystem. The large-cap altcoin, with a fully diluted valuation of nearly $100 billion, has registered notable cash inflow year to date.
As Coinspeaker previously explained, several institutional investors have shown great interest in Solana via purchasing SOL from FTX auctions. Moreover, FTX has been liquidating its locked Solana holdings to repay its creditors after the court’s approval.
With the notable SOL mass adoption, the Solana network has experienced notable payment congestion, thus leading to a high rate of pending transactions. Currently, the Solana network has an average transaction per second (TPS) of about 837, which is extremely low compared to its competitors such as Tron and BSC.
Nonetheless, Solana developers have been working on a permanent solution to scale the layer one (L1) network and ultimately compete with Ethereum.
next