Solana price against Ethereum has broken out to a new all-time high, thus signaling rising crypto cash rotation to the altcoin industry.
The altcoin industry led by Ripple Labs-backed XRP and Solana (SOL) has made significant headlines that have attracted more attention from institutional investors and retail traders. For instance, the Brazilian Securities and Exchange Commission (CVM) approved the first spot Solana exchange-traded fund (ETF) on Wednesday.
The spot Solana ETF in Brazil is in a pre-operational phase that requires the approval of the Brazilian stock exchange, B3. Once approved for listing, Brazil’s spot Solana ETF, which is offered by the QR asset manager and managed by Vortx, will track the CME CF Solana dollar reference rate.
“This ETF reaffirms our commitment to offering quality and diversification to Brazilian investors. We are proud to be global pioneers in this segment, consolidating Brazil’s position as a leading market for regulated investments in crypto assets,” Theodoro Fleury, manager and chief investment officer of QR Asset, noted.
Rising Demand for Solana and Its Products
The recent approval of spot Bitcoin and Ethereum ETFs in the United States has prompted speculation of the next major altcoin to follow the same path. According to experts, Solana has the best fundamentals and robust online community of developers and investors, thus the best candidate for the spot ETF market.
Notably, SOL is listed across major centralized and decentralized exchanges, thus offering deep liquidity to both retail and institutional customers. As the only top-tier layer one chain with a functional web3-oriented smartphone dubbed Saga mobile, the Solana network is expected to grow exponentially in the coming years.
As of this report, the Solana ecosystem has a total value locked (TVL) of about $4.79 billion and a stablecoins market cap of around $3.68 billion.
Remarkably, the Solana Web3 ecosystem has recently threatened to dethrone that of Ethereum in on-chain activity.
Moreover, the Solana ecosystem takes pride in vibrant meme coins, currently worth about $7 billion and a daily average trading volume of nearly $3 billion.
Impact on SOL Price Action
Following the improving Solana fundamentals, SOL flipped Binance native coin BNB as the fourth largest crypto by market cap. As of this writing, Solana had a market cap of about $71.3 billion whilst BNB had a valuation of around $71.1 billion.
$Sol Moving inside the Bullish Pennat in 3D Timeframe✅
Expecting Breakout soon📈#SOL #SOLUSDT #Solana #Crypto pic.twitter.com/OS7euUpHXO
— ZAYK Charts (@ZAYKCharts) August 7, 2024
From a technical standpoint, SOL price against the US dollar is on the verge of rallying to its all-time high after consolidating in the last four months. Solana price has reclaimed the daily 50 and 200 Moving Averages (MAs) as a support level following the recent rebound from the general crypto rebound.
Consequently, SOL price has established a solid support level around $129, which could hold in case of further capitulation ahead.
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