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The popular cryptocurrency Solana (SOL) increased by over 13.58% in the last 48 hours, reaching an intraday high of $188 on May 21. SOL’s monthly returns are around 18% and 65% respectively in the 90-90 range.
Optimism for SOL Increases
SOL’s value increase in 2024 can be attributed to various factors, including the ongoing superior performance of Solana-based meme tokens. Meanwhile, significant optimistic news updates have temporarily increased demand for riskier assets, including Solana.
The possibility of Solana becoming the next ETF candidate supports the SOL price. News that the U.S. Securities and Exchange Commission has contacted issuers and exchanges regarding spot Ethereum exchange-traded funds (ETFs) has increased the likelihood of approval later this week. A Polymarket survey asking whether an Ethereum ETF will be approved by May 31 jumped from 10 cents to 71 cents, indicating a 71% chance of approval by then.
Spot ETF Approval for ETH
Therefore, the potential approval of a spot Ethereum ETF this week has led to discussions among analysts about the possible outcomes for other top-tier cryptocurrencies, including Solana. According to Matrixport co-founder Daniel Yan, if an Ethereum ETF is approved by the end of this week, “buying SOL/ETH” might be a better trade than “buying ETH.”
Another analyst and X user, Gumshoe, stated that the spot Ethereum ETF approval has “more bullish expectations for SOL than ETH.” Sharing similar thoughts to Yan’s trading ideas, Gumshoe argued that if an Ethereum ETF is approved, the next ETF would be SOL. They added that if the ETF is rejected, there would be less reason to buy ETH as SOL would be more attractive. While investors remain hopeful that the SEC will approve a spot Ethereum ETF, the crypto price continues to rise with SOL among the beneficiaries.
