2025 is shaping up to be another year of substantial growth for Solana, fueled by rising enthusiasm among individual investors and the expectation of a Solana-focused exchange-traded fund (ETF) launching in the US.
On January 9th, Solana (SOL) dropped beneath the significant $200 level following a weekly decline of more than 7%, according to information from CryptoMoon Markets Pro.
Regardless of the present adjustments, Solana appears ready to deliver substantial financial gains this year, primarily fueled by the anticipation of profits among retail investors, as stated by Nicolai Søndergaard, a research analyst at Nansen, during an exclusive interview at the Emergence Prague 2024 event.
[Solana’s attractiveness] derives from its perceived potential returns. In essence, it appears more affordable. When considering a single unit, one might simply perceive it as less expensive to purchase,” Søndergaard noted.
Inexperienced traders in the retail sector frequently commit an error by judging a cryptocurrency’s worth and future prospects based on its per-unit price alone. However, the true value and growth potential of a coin are usually tied to its market capitalization instead.
As a researcher, I frequently observe that this common misunderstanding can make digital assets like Solana seem more attractive to individual investors. This is because the relatively lower price point of Solana allows these investors to purchase an entire coin for approximately $200, whereas buying even a small fraction of Bitcoin (BTC) or Ether (ETH) at current prices would require significantly more investment.
Instead, a token’s market capitalization offers a more precise picture of its overall worth, how it stacks up against other digital currencies in terms of popularity, and possible fluctuations in its price.
As an analyst, I’m finding myself aligning with a growing consensus that Solana’s value could potentially exceed $400. This projection is primarily derived from analyzing historical price patterns and trends, as well as the mounting excitement surrounding the forthcoming launch of the first US-based spot Solana Exchange Traded Fund (ETF).
SOL ETFs await approval by the end of January 2025
By the close of January, following President-elect Donald Trump’s inauguration on the 20th, there’s a possibility that the first Solana Exchange-Traded Funds (ETFs) might secure approval within the crypto industry.
At least five heavyweight asset managers – VanEck, Grayscale, 21Shares, Bitwise, and Canary Capital – are competing for a position in the Solana ETF market.
The deadline for Grayscale’s Solana ETF submission is January 23rd. On the other hand, the four other applicants anticipate receiving a preliminary decision by January 25th, which would be 45 days after the SEC officially started reviewing their ETF application in November 2024.
An Analyst pointed out that an Exchange Traded Fund (ETF) based on Solana (SOL) in the United States could provide enhanced accessibility for conventional investors who don’t have accounts with centralized exchanges (CEX), as it offers a simpler way to gain some exposure to SOL.
Nansen’s Nicolai Søndergaard, interview with CryptoMoon’s Zoltan Vardai
According to Nansen’s Søndergaard, although it’s very probable that a Solana ETF will be approved in 2025, the specific timeframe is still uncertain and causes uncertainty among crypto investors.
“The question is if it’s going to take a lot of iterations before it goes through, similar to what happened with BTC and ETH. But I think it’s definitely happening in 2025.”
On August 7, it was announced that the initial Solana Exchange Traded Fund (ETF) from Brazil received approval, paving the way for similar funds in other regions around the world.
On December 11th, Solana regained its position over $230, driven by mounting trader excitement regarding a potential SOL ETF and Bitwise’s prediction of a $750 price for Solana, with the cryptocurrency trading at approximately $191 as of 10:08 am UTC.
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2025-01-09 13:45